John Foley and Hisao Kushi, the co-founders of the American Internet fitness platform Peloton Interactive, resigned. Currently, the company is in trouble. To cut losses, Peloton is making a major overhaul in a bid to win investor confidence again.
At the beginning of 2021, Peloton was valued at $52 billion, but the company will struggle to maintain high growth in the future. Earlier this year, Foley stepped down as CEO after activist investors pressed for the palace, but remains executive chairman. "It's time for me to start writing a new chapter in my career," Foley said in a statement. Karen Boone, who joined the company's board in 2019, will replace Foley as the new executive chairman.
Shares of Peloton have fallen 69.1% this year as of Friday's close.
Foley founded Peloton in 2012 and is succeeded as CEO by Barry McCarthy, who previously held executive positions at Spotify and Netflix.
In the most recent quarter, Peloton posted a net loss of $1.24 billion, as demand for bikes and treadmills was low and subscriber growth wasn't much. Since its establishment, Peloton has suffered operating losses almost every year. In order to reverse the situation, Peloton has taken a series of measures, such as layoffs, price increases, and borrowing Amazon's platform to sell products to increase profits.