Peloton to cut nearly 3,000 jobs and replace co-founder John Foley as CEO after plummeting value

Peloton to cut nearly 3,000 jobs and replace co-founder John Foley as CEO after plummeting value

Shares of the fitness firm, which flourished during the lockdown as people started exercising at home, have plummeted as demand waned.

Shares of the fitness firm, which flourished during the lockdown as people started exercising at home, have plummeted as demand waned.

Peloton is set to replace its CEO and co-founder John Foley and cut nearly 3,000 jobs in a desperate bid to save the struggling exercise company.

Foley will step down and take on a new position as the company’s executive chairman, while Barry McCarthy, the former chief financial officer of Spotify and Netflix, will become the new boss.

Peloton will also cut about 2,800 jobs, affecting 20% ​​of the corporate workforce, according to the Wall Street Journal.

The loss of jobs will not affect the instructor roster or maintenance staff.

The stock of the fitness firm, which flourished during the lockdown as people started exercising at home, has plummeted as demand dwindled.

Its value has fallen from $50 billion a year ago to $9.7 billion.

Other high-profile personnel changes include company president William Lynch, who is stepping down from his leadership role but remaining on the board of directors.

Eric Blachford, who has served as director of the company since 2015, will also step down from the board.

Two new directors are being added: Angel Mendez, who runs a private AI company for supply chain management, and Jonathan Mildenhall, former director of marketing for AirBNB.

Peloton is set to replace its CEO and co-founder John Foley and cut nearly 3,000 jobs in a desperate bid to save the struggling exercise company.

Peloton is set to replace its CEO and co-founder John Foley and cut nearly 3,000 jobs in a desperate bid to save the struggling exercise company.

Foley will step down and take on a new position as the company's executive chairman, while Barry McCarthy (pictured), former CFO of Spotify and Netflix, will become the new boss.

Foley will step down and take on a new position as the company’s executive chairman, while Barry McCarthy (pictured), former CFO of Spotify and Netflix, will become the new boss.

The company has attracted the attention of potential buyers in recent days, including e-commerce giant Amazon.com Inc., according to a person familiar with the matter.

This saw the share price rise slightly to its current price of $29.75, but still well below its $154.67 offer last year.

The current figure is only slightly above the September 2019 IPO offer of $29 per share.

The company’s shares fell 3.2% today in premarket trading.

Last month, investment firm Blackwells Capital called on the company’s board of directors to fire its chief executive officer and put the company up for sale.

The investment firm, which is run by Jason Aintaby, also called on the board to put the company up for sale to buyers such as Walt Disney Co, Apple Inc, Sony Group or Nike Inc.

Peloton will also cut approximately 2,800 jobs, affecting 20% ​​of the corporate workforce.

Peloton will also cut approximately 2,800 jobs, affecting 20% ​​of the corporate workforce.

Foley said in an interview, “We are open to exploring any opportunity that could create value for Peloton shareholders.”

The current CEO, who co-founded Peloton 10 years ago, retains stock and voting rights, meaning any new deal will require his backing.

Investors have been waiting for details about the new plans that should accompany the results of the second fiscal quarter.

Foley said: “I always thought there should be a better CEO for Peloton than me. Barry fits better than anyone I could imagine.

McCarthy, in his late 60s, plans to leave New York for California for a new job.

As part of the cost-cutting process, Peloton hopes to save $800 million and cut capital expenditures by $150 million this year.

It will also cancel the construction of its $400 million plant in Ohio and cut back on its delivery teams.

Rumors of a potential sale come at a critical time for Peloton, whose market value has fallen to $8 billion after hitting $50 billion a year ago.

Rumors of a potential sale come at a critical time for Peloton, whose market value has fallen to $8 billion after hitting $50 billion a year ago.

The news comes after Peloton shares surged more than 30 percent after hours on Friday following reports that Amazon and others were interested in a potential deal with the beleaguered fitness company.

After closing Friday at $24.60, the company’s shares jumped to a high of $34.09 after hours.

Meanwhile, the Financial Times reported late Friday that Nike was also evaluating Peloton’s offer, citing people briefed on the matter who said the considerations were preliminary and Nike had not been in talks with Peloton.

Amazon was reportedly talking to consultants about a potential deal that Peloton was open to. Nike is also evaluating Peloton's proposal, according to people briefed on the matter, who said the considerations are preliminary.

Amazon and Nike are reportedly interested in buying Peloton, which has plummeted in value over the past year.

There are other potential unnamed fans interested in buying the exercise equipment company, although there is no close deal on the horizon.

The deal would make sense for Amazon, which could have many potential ties between Peloton and their existing businesses, according to the WSJ.

Amazon’s fleet and logistics division can help with Peloton’s supply chain issues, and a Peloton subscription could potentially tie into Amazon Prime, which offers users a shipping exemption, a streaming service and more for a monthly or yearly fee, according to the WSJ.

Its quarterly revenue has been steadily falling in recent months due to a sharp drop in demand.  While the company lists its latest time frame as the first quarter of 2022, its earnings for that period were released last November.

Its quarterly revenue has been steadily falling in recent months due to a sharp drop in demand. While the company lists its latest time frame as the first quarter of 2022, its earnings for that period were released last November.

Amazon has already bundled other companies’ services for Amazon Prime, which will cost $139 per year starting this month.

In recent years, Amazon has also been promoting connected health with the launch of its Halo Health and Wellness tracker.

The fitness giant has turned to consulting group McKinsey & Co. to help get its finances in order after the company slashed its 2022 future revenue forecast by $1 billion to $4.4 billion to $4.8 billion last November. .

A few days later, the company’s share price fell 27 percent to $24.22 in two years.

The huge downturn came after a leaked presentation showed the company was facing a “significant decline” in demand for its products.

The report, first seen by CNBC, says the company plans to temporarily halt bike production in February and March and won’t make the Tread treadmill for six weeks starting in February.

The company was reported to have no plans to produce Tread+ trainers in fiscal 2022 and has thousands of bikes and treadmills lying around in warehouses or on cargo ships.

It is not known how many products are currently in stock.

Foley attempted to dismiss the devastating “rumors” in the statement, saying, “The rumors that we are ending bike and track production are false.”

He added that the company had “experienced leaks” of “confidential information” this week that caused a flurry of speculative articles in the press.

But he said the information was “incomplete, out of context and not reflective of Peloton’s strategy,” adding that the source of the leak had been identified and a criminal investigation would be launched.

Last May, the company was forced to recall 125,000 treadmills after reports of multiple injuries and the death of a child in an accident. U.S. regulators are investigating the company for injuries.

The Consumer Product Safety Commission (CPSC) said Peloton received 72 additional complaints of adults, children and pets being pulled under the back of a treadmill, causing injuries to 29 people.

The security agency also released a video showing how a person can get trapped in the device.

Mr. Big was killed in the Sex and the City reboot premiere episode

Mr. Big was killed in the Sex and the City reboot premiere episode “And Just Like That” after suffering a heart attack following a workout on a Peloton bike.

In November, he cut his full-year forecast to $1 billion as analysts warned there was a tough road ahead.

The peloton also suffered from bad publicity due to an episode of the Sex and the City and Just Like That reboot, which suggested that the company’s exercise bikes could be lethal.

Carrie Bradshaw’s husband, Mr. Big, collapsed to the ground seconds after finishing a cycling session with his favorite instructor. He died of a heart attack in the episode.

Peloton later countered that his equipment did not contribute to the fictional character’s death, which he blamed on his cigar smoking and unhealthy diet.

Peloton then responded with their own parody ad, but withdrew the ad after actor Chris Noth, who plays Mr. Big, was accused of sexual assault.

Leave a Comment

Your email address will not be published.