Peloton Interactive plans to replace its chief executive, cut costs and overhaul its board, the Wall Street Journal reported on Tuesday, as the stationary bike maker seeks to deal with the slumping demand that has slammed its shares.
Co-founder John Foley will step down as CEO and become executive chairman, while Barry McCarthy, former chief financial officer of Spotify Technology SA and Netflix Inc, will become the new chief.
The company has attracted interest from potential buyers, including Amazon, according to a person familiar with the matter.
Peloton will also cut about 2,800 jobs, affecting 20% ​​of its corporate position, according to the Wall Street Journal. The job cuts will not affect your fitness instructor roster or content, the report said.
The company’s sales soared during the Covid-19 lockdowns, with many buying fitness equipment at home. But fortunes began to disappear as vaccinations increased, gyms reopened and rivals offered competitive products.
Peloton’s stock price has dropped 83% last year and is now valued at about $9.7 billion, compared with $50 billion at the height of its popularity.
Last month, investment firm Blackwells Capital urged the firm’s board to fire its CEO and put the company up for sale.
The investment firm, run by Jason Aintabi, also asked the board to put the company up for sale to a buyer like Walt Disney Co, Apple Inc, Sony Group or Nike Inc.
Peloton did not immediately respond to a request for comment from Reuters.
The company’s shares fell 3.2% in premarket trading.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
