Two of Peloton’s co-founders, John Foley and Hisao Kushi, executive chair and chief legal officer respectively, have resigned. Foley has already left the company and Kushi will depart on 3 October. The board has appointed Karen Boone as Peloton’s chairperson of the board, who was previously in the role of lead independent director. Tammy Albarrán, who comes from Uber as their chief deputy general counsel, will replace Kushi.
"We are immensely grateful to John and Hisao for having the vision, ambition, and commitment to turn Peloton into the iconic consumer brand it is today,” said Boone. “Not only did they succeed in building a great company, they transformed an entire industry by leveraging fitness and technology. Their impact will resonate long after their departure.”
Foley co-founded Peloton in 2012. He was the company's CEO for ten years, becoming executive chair in February 2022 when current CEO Barry McCarthy replaced him to “take the business to the next level”.
In July the company ceased manufacturing its own products in favour of outsourcing to Taiwan-based Rexon. A few weeks ago, the company reported a US$1.2bn loss in Q4 2021, of which it equated US$415m of the loss to restructuring changes and announced cuts of 800 jobs and equipment price increases in a bid to get the company back on track.
“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,” said Foley. “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.”
At its peak Peloton was valued at US$50bn and trading at around US$170 (December 2021). Today the company's stock price has decreased to under US$10 and dropped over 90 percent of its stock price since Q3 2021.
The resignation announcements coincide with the news that Peloton will expand its rental programme in the US, in response to changing consumer behaviour and the cost of living crisis. The scheme gives members access to live and on-demand classes at US$89/month for the original Peloton Bike or US$119 for Bike+.
