On January 8, John Foley stated that he is stepping down as CEO of Peloton and will now serve as executive chairman. Former Spotify and Netflix CFO Barry McCarthy will take up the post. Foley said that the corporation has opted to cut the size of its staff by around 2,800 roles worldwide and that adjustments are being implemented at all levels of the organization. The layoffs, which represent 20% of Peloton’s workers, and the leadership move came after the firm lost $439 million in the most recent quarter. According to the Times, the brand’s share price has plunged by more than 80% since January 2021.
The newest announcement, according to John Foley, was one of the most difficult in the company’s history. He also stated:
“Let me be clear: this team is responsible for building Peloton into what it is today. This includes YOU. This team has built the hardware, software, content, distribution, and retail experience that is helping to enhance the lives of millions of Members, brick by brick. This is very uncommon and potent.”
John Foley, the co-founder and CEO of Peloton, has decided to resign after a tumultuous three weeks. If only there was someone out there to encourage him to keep going, to fight through the temptation to quit.
— Dick Bremer (@dbremer_pxp) February 8, 2022
John Foley’s net worth
John Foley invented Peloton in response to the need for suitable exercise in a hectic work-life routine. During the pandemic in November 2021, the company’s stock rose. Foley formerly served as Barnes & Noble’s e-commerce president and worked for Mars Inc. In 1994, he earned a bachelor’s degree in science and industrial engineering from the Georgia Institute of Technology.
In 2001, he earned a master’s degree in business administration from Harvard Business School. With a net worth of about $1.5 billion, John Foley’s name appeared on the Bloomberg Billionaires Index in 2020 and 2021. In January 2022, his net worth fell to $350 million. On March 20, 2021, he sold 100,000 Peloton Interactive Inc stock shares for more than $11,067,000. John founded Peloton in 2013 after raising $307,000 to begin his at-home fitness firm. He, Graham Stanton, Hisao Kushi, Yong Feng, and Tom Cortese started the corporation.
Peloton is implementing new measures.
John Foley outlined a number of initiatives that Peloton has opted to take to care of its workforce, including severance pay, healthcare, and a free 12-month Peloton membership for workers who are let go. Peloton will also close its Output Park factory in Ohio, rearrange its operations, and minimize its warehouse footprint.
Following its boom during the Covid-19 epidemic, the corporation has experienced a number of challenges in recent months. That period, according to John, was a flurry of learning. According to internal papers obtained by CNBC, there has lately been a halt in bike and treadmill manufacturing due to a drop in demand. Foley rejected the accusations, claiming that the firm was in the midst of a strategic reset after seeing an increase in sales of at-home workout items while clubs were closed due to the epidemic.
In a message published on Peloton’s website last month, John also mentioned the suspected production downshift, stating:
“Notably, we’ve found ourselves in the midst of a once-in-a-hundred-year occurrence with the COVID-19 pandemic, and what we expected to happen over three years transpired in months throughout 2020 and 2021.”
They worked rapidly to satisfy demand when the globe needed them, and they felt good about right-sizing their output, according to the letter. It also noted that as they transition to more seasonal demand curves, they are resetting their production levels in order to achieve long-term growth.
