Peloton (New York) has named Barry McCarthy as its new CEO and President, replacing former CEO John Foley. McCarthy, the former Chief Financial Officer of Spotify and Netflix, will also join Peloton’s board.
The company also announced plans to cut 2800 jobs or roughly 20 percent of its corporate positions, CNBC reports. It also recently reduced its financial outlook for the year from $4.4 to $4.8 billion to $3.7 to $3.8 billion in fiscal revenue.
All of these moves are reportedly to help win back customer and investor confidence in the brand. “Our objective is clear: we are taking steps to best position Peloton for sustainable growth, while also establishing a clear path to consistent profitability,” says Foley in a letter for shareholders. “The comprehensive restructuring actions we are announcing today will streamline our teams and reporting structures, increase P&L accountability, create a more efficient and flexible supply chain, and enforce greater investment discipline to ensure our spending meets appropriate return thresholds.
“As part of this program, we are announcing a meaningful reduction of our workforce, which will impact nearly all of our operations and across almost all levels. It is not easy to say goodbye to valued colleagues and friends, each of whom have made important contributions to helping build Peloton into the company it is today. Decisions like these were not taken lightly, and we will work hard to assist impacted teammates with their transitions.”
According to reports from Financial Times and The Wall Street Journal, as reported by Retail Dive, Amazon and Nike are reportedly considering bids to acquire Peloton. Other potential buyers could include Apple or private equity firms.