May 26, 2022

Beleaguered fitness company Peloton said Tuesday it will replace CEO and co-founder John Foley as the brand seeks to win back market and consumer confidence. Barry McCarthy, who has held leadership roles at Spotify and Netflix, will become the new CEO, effective Wednesday, the company announced.

“Today’s leadership changes are the culmination of a succession planning process that the Board and John have worked on together over the last several months,” according to a statement from Peloton released Tuesday morning.

The company also announced it would be slashing 2,800 jobs, or 20 percent of its corporate workforce. It will also pull back on its Ohio factory, a $400 million investment that was expected to bring more than 2,000 jobs to Troy Township.

Peloton is said to be attracting interest from potential buyers, shortly after it was called out by an activist investor who said the company should try to sell itself and fire Foley.

For would-be buyers, the draw isn’t the company’s connected fitness equipment, but the billions of data points it has on its customers.

“The main draw to acquire Peloton would be all the data generated by Peloton’s well-heeled subscribers,” said David Wagner, portfolio manager at Aptus Capital Advisors.

Amazon is exploring the idea of buying Peloton, The Wall Street Journal reported last week, while the Financial Times separately named Nike as another prospective suitor. And Dan Ives, analyst at Wedbush, suggested that Peloton could be a…

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