As exercise demands shifted away from the gym amid pandemic-related shutdowns, Peloton hit heights experienced by precious few tech firms. That made the connected fitness company’s crash down to Earth all the more jarring. In February, co-founder John Foley stepped down as CEO amid a 2,800-person layoff.
Spotify CFO Barry McCarthy stepped into the leadership role, before appointing a number of new members to the executive team, in a bid to stem the bleeding, tighten the company’s belt and, perhaps, raise its stock price in the process.
Today, Peloton announced that Foley — who had remained in the executive chair position — has resigned from the company altogether, alongside fellow founder and Chief Legal Officer Hisao Kushi. Foley’s resignation goes into effect today, while Kushi’s is planned for October 3.
In addition to the rest of the recent C-level hires, Tammy Albarrán will become both chief legal officer and corporate secretary on the latter date. She most recently served as chief deputy general counsel and deputy corporate secretary of Uber.
“I would like to offer my gratitude to John and Hisao for their shared vision, dedication, and passion for Peloton,” McCarthy said in a prepared statement. “Through their hard work, they have given the world the connected fitness industry and created a platform that empowers each of us to be the best version of ourselves. We are indebted to them for their countless contributions.”
Peloton CEO John Foley, third from right, celebrates his company’s IPO at the Nasdaq MarketSite, Thursday, Sept. 26, 2019, in New York. (AP Photo/Mark Lennihan)
Foley’s statement on the matter, predictably, reflected on the good times, with reference to his staying a loyal customer:
As I reflect on the journey Peloton has been on since we founded it, I am so proud of what we have built together. From day one, the incredible talent we’ve had on our team and the dedication, hard work, and creativity of every Peloton employee are what got us to where we are today. We founded the company because we wanted to make fitness and wellness convenient, fun, and effective. Because of the work of thousands of people, we’ve done that.
Now it is time for me to start a new professional chapter. I have passion for building companies and creating great teams, and I am excited to do that again in a new space. I am leaving the company in good hands: The Leadership Team with the support of the Board is going to take Peloton to the next level as a company, and I am happy to know our Members are going to continue to be surprised, delighted, engaged, and excited about everything that is in store (looking at you, rower!).
Goodbyes are never easy, but I don’t view this as goodbye. I will always be a Peloton Member and a passionate advocate for our mission. So until we meet again, stay safe and strong. And I’ll see you on the leaderboard.
The move follows recent news that Peloton has begun to outsource production on its bikes and treadmills, after scrapping plans for a massive production facility. Late last month, it began selling product on Amazon, a major shift for a company formerly completely focused on first-party channel sales.