Peloton co-founder and former CEO John Foley has stepped down as executive chairman of the board, marking the connected fitness company’s latest major shakeup (via The Wall Street Journal).
Things have been pretty turbulent lately for Peloton. Despite selling much-loved products and classes, the company had to cut jobs and adjust prices (both cuts and, months later, increases) this year after overextending itself to meet increased demand at the start of the pandemic. In its fourth quarter 2022 earnings report in August, the company announced an operating loss of $1.2 billion, although current CEO Barry McCarthy positioned its earnings as a sign of “substantial progress”. .
Foley, who was Peloton’s CEO for nearly 10 years, stepped down in February but will now leave the company entirely. “Now is the time for me to start a new professional chapter,” Foley said in a press release. “I have a passion for building businesses and building great teams, and I’m excited to do it again in a new space.” Karen Boone, the board’s lead independent director, will become the board’s chair.
Foley’s resignation isn’t the only executive departure announced by Peloton on Monday. Hisao Kushi, general counsel and fellow co-founder of Peloton, has resigned and is being replaced by Tammy Albarrán, Uber’s chief assistant general counsel. Commercial director Kevin Cornils is also leaving.
Current CEO Barry McCarthy thanked the departing leaders in a note to staff: “Today’s changes reflect the personal decisions of the leaders who paved the way for our future success, and we owe them our gratitude. You can read McCarthy’s full memo below.
I would like to inform you of several changes in the management of the company.
Co-Founder and Executive Chairman John Foley has decided to step down from the Peloton Board and Karen Boone, our Lead Independent Director, has been elected to the position of Board Chair (press release will be emailed to you separate ).
General Counsel Hisao Kushi, who helped co-found the company, will leave and Tammy Albarrán will become our new CLO. Tammy joins us from Uber.
The commercial director, Kevin Cornils, will leave and we will not fulfill his role. Dion Sanders will add to his portfolio and take on many of Kevin’s responsibilities, becoming our new Head of Emerging Business.
Jen Cotter, Chief Content Officer, will assume oversight of our apparel and accessories strategy and operations.
Dara Treseder, SVP Marketing, Communications and Membership, will report directly to me.
First, let me say that there would be no Peloton without John Foley or Hisao Kushi (or co-founders Tom Cortese, Graham Stanton and Yony Feng). They established the mission and values that guide us to this day. Through their hard work, they have empowered the world with the connected fitness industry and created a platform that empowers each of us to be the best version of ourselves.
We have all heard the stories of John’s relentless pursuit of this vision. Founders become founders because they see things we don’t and have the courage to go for it. Without John’s unwavering commitment to his dream, there would be no passionate and dedicated community of nearly 7 million Peloton members. I want to thank John for leading the way.
The same should be said of Hisao, who has guided Peloton’s intellectual property and legal strategy from day one. After deciding to step back and embark on a next chapter, Hisao partnered with me in the process of selecting CLO candidates and recruiting his successor. I would like to thank him for all he has done and his help during this transition.
We will share today’s press release with you in an upcoming email. Our external announcement commemorates two of our co-founders and their many contributions.
I would also like to thank Kevin Cornils, who joined Peloton in 2018 as MD, International and became Chief Commercial Officer in 2021. Kevin has worked tirelessly to build Peloton into the international brand it is today, recently helping to innovate the company’s go-to-market strategy and operationalize new initiatives such as selling through third-party retailers and our Peloton Rental offering. Kevin decided the time was right to look for another opportunity that would require him to travel less (he lived on planes) and allow him to contribute his energy, once again, to a start-up company looking to grow.
Today’s changes reflect the personal decisions of leaders who paved the way for our future success, and we owe them our gratitude.
I look forward to working with Karen, Dion and Tammy in their new or expanded roles – and with each of you – as we enter the growth phase of our transformation.
Me to you. You to me. You to each other. And all of us to our Members.
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