As training demands shifted away from the gym amid pandemic-related shutdowns, Peloton reached heights few tech companies have experienced. The crash of the networked fitness company was all the more shocking. In February, co-founder John Foley resigned as CEO after laying off 2,800 employees.
Spotify CFO Barry McCarthy took the lead before adding a number of new members to the executive team in a bid to stem the bleeding, tighten the company’s belt and perhaps boost its stock price in the process.
Today, Peloton announced that Foley – who had remained in the position of CEO – along with his co-founder and Chief Legal Officer Hisao Kushi, had resigned from the company entirely. Foley’s resignation is effective today and Kushi’s resignation is scheduled for October 3.
In addition to the other recently hired C-Level employees, Tammy Albarrán will become both Chief Legal Officer and Corporate Secretary as of the latter date. Most recently, she was Chief Deputy General Counsel and Deputy Corporate Secretary of Uber.
“I would like to express my gratitude to John and Hisao for their shared vision, dedication and passion for Peloton,” McCarthy said in a prepared statement. “Through their hard work, they gave the world the connected fitness industry and created a platform that empowers each of us to be the best version of ourselves. We owe them a debt of gratitude for their countless contributions.”
Peloton CEO John Foley, third from right, celebrates his company’s IPO on Thursday, September 26, 2019 at the Nasdaq MarketSite in New York. (AP Photo/Mark Lennihan)
Foley’s statement on the matter, as expected, reflected the good times in terms of him remaining a loyal customer:
As I reflect on the journey Peloton has taken since its inception, I am so proud of what we have built together. From day one, the incredible talent within our team and the dedication, hard work and creativity of every Peloton employee has gotten us to where we are today. We started the company because we wanted to make fitness and wellness convenient, fun and effective. Because of the work of thousands of people, we made it.
Now it’s time for me to start a new professional chapter. I have a passion for building businesses and building great teams and I look forward to doing it again in a new environment. I leave the company in good hands: The leadership team, with the support of the Board, will take Peloton to the next level as a company, and I’m pleased to know that our members will continue to be surprised, delighted, engaged, and excited about all that’s to come coming to us (looks at you, rower!).
Goodbyes are never easy, but I don’t see this as goodbyes. I will always be a peloton member and a passionate advocate for our mission. Until we meet again, stay safe and strong. And see you on the leaderboard.
The move follows recent news that Peloton has begun to outsource production of its bikes and treadmills after scrapping plans for a massive manufacturing facility. Late last month, the company began selling products on Amazon, a big shift for a company that used to be entirely focused on selling through first-party channels.
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