Peloton CEO and co-founder John Foley will step down, replaced by ex-Spotify and Netflix CFO Barry McCarthy; Peloton will cut 2,800 jobs and cancel Ohio factory
Exercise-equipment maker to name former Spotify CFO Barry McCarthy as successor, overhaul board and cut costs
Wall Street Journal Cara Lombardo
Context & Ripple Effects
Peloton’s earlier $550 million financing ahead of its expected IPO reflected an expansion phase; this leadership and cost reset reverses that posture by abandoning planned factory capacity while reshaping management and the board.
The move also begins a longer turnaround cycle: McCarthy later left Peloton amid another workforce reduction, and Peloton subsequently selected Ford executive Peter Stern to lead its turnaround.
First-order effects
- John Foley gives up the CEO role to Barry McCarthy, while Peloton simultaneously overhauls its board and puts 2,800 employees’ roles into the cost-reduction plan.
- Peloton cancels the planned Ohio factory, immediately ending that proposed addition to its operating capacity.
Second-order effects
- Installing a former Spotify and Netflix finance executive makes the leadership transition inseparable from the cost program, shifting Peloton’s near-term mandate from expansion toward restructuring.
- The factory cancellation concentrates Peloton’s turnaround on its existing footprint rather than a new Ohio site, affecting the company’s planned local buildout.
Third-order effects
- Later coverage of further layoffs and McCarthy’s departure places this reset at the start of a prolonged retrenchment rather than a one-time personnel change.
- Peloton’s later appointment of Peter Stern suggests that restoring the business required repeated leadership changes alongside successive cost actions.
The trend: Peloton is moving from capacity-led expansion to a multi-stage turnaround defined by cost cuts, cancelled investment, and leadership turnover.
Related: Peloton · Barry McCarthy · McCarthy steps down as Peloton CEO amid layoffs · Peloton names Peter Stern as CEO
Related Coverage
- View article Associated Press
- View article The Verge
- Peloton Announces Comprehensive Program to Reduce Costs and Drive Growth, Profitability, and Free Cash Flow Peloton Interactive, Inc.
- Peloton names tech exec Barry McCarthy to replace CEO John Foley, shares tumble CNBC · Lauren Thomas
- View article PCMag
- Peloton CEO John Foley is stepping down as part of a corporate shakeup Protocol · Sarah Roach
- Peloton slashing jobs and replacing CEO as potential acquisition rumors continue 9to5Mac · Ben Lovejoy
- Peloton is scrapping plans to build its own factory Insider · Grace Dean
- View article CNBC
- Activist steps up campaign to oust Peloton's leadership Financial Times
- Peloton CEO steps down as the company cuts 2,800 jobs TechCrunch · Brian Heater
- View article New York Post
- View article The Economic Times
- View article Newslit Daily
- View article Philip Elmer‑DeWitt
- Peloton Interactive CEO John Foley to Step Down: Report Benzinga · Shivani Kumaresan
- Peloton Co-Founder Foley Replaced as CEO by Ex Spotify CFO PYMNTS.com
- Peloton's C.E.O. Change Raises Questions About a Sale New York Times
- Peloton says its C.E.O. will step down and announces 2,800 layoffs. New York Times · Gregory Schmidt
- Peloton is replacing its CEO with ex Spotify and Netflix CFO Barry McCarthy Neowin · Karthik Mudaliar
- Peloton chief to step down after activist campaign Financial Times
- Peleton is cutting 20 percent of workforce as CEO steps down The Verge · Thomas Ricker
- View article WRAL TechWire
- Peloton shakeup announced: CEO John Foley stepping down, company cutting 20% of its workforce, more Connect The Watts · Chance Miller
- Why Apple should buy Peloton for nearly $15 billion: analyst Yahoo Finance · Brian Sozzi
- Peloton Replaces CEO, Cuts Jobs as Activist Pushes for Sale Bloomberg
- Peloton CEO to Step Down Amid Broader Overhaul Barron's Online · Joe Woelfel
- Peloton ousting CEO John Foley, cutting hundreds of jobs in turnaround bid New York Post · Thomas Barrabi
- Peloton is replacing its CEO and cutting around 2,800 jobs Engadget · Steve Dent
- Peloton to slash workforce, replaces CEO - stock plunges WRAL TechWire · Jordan Valinsky
- Peloton co-founder steps down after rough ride Associated Press
- Amazon, Nike eye Peloton acquisition as pandemic gains are wiped out SlashGear · Eric Abent
Discussion
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Wedbush
Wedbush
on x
Could Apple Make a Bid For Peloton? Would Make Strategic Sense for Cupertino
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@lisatozzi
Lisa Tozzi
on x
I will forever remember this about Peloton CEO John Foley. https://twitter.com/... https://twitter.com/...
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@cararlombardo
Cara Lombardo
on x
Big @WSJ scoop: Peloton ($PTON) hopes to regain its footing by replacing its CEO, ending plans for a new factory and making several other changes. All the details: https://www.wsj.com/...
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@jeffnolan
Jeff Nolan
on x
It is really hard to imagine that $PTON is worse off now than pre-pandemic. They wasted a gift, failed to broaden the appeal of the product, lower costs, and position for post-pandemic reality. They really thought the party would not end https://twitter.com/...
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@tomgara
Tom Gara
on x
Corporate America has now returned to its ugly pre-2012 status quo of not having a single CEO who starts the day by lapping 40 sips of water from his cupped hand in the bathroom sink https://twitter.com/...
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@carlquintanilla
Carl Quintanilla
on x
“Where the company got over its skis is it built out a cost structure as if Covid was the new normal,” Mr. McCarthy, Peloton's incoming CEO, said. @WSJ $PTON https://www.wsj.com/...
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@neilcybart
Neil Cybart
on x
Peloton announces its first set of changes. - Former Spotify CFO as new CEO - Some shuffling of the board - Closing its U.S. factory - 20% workforce reduction One theme found with these changes -> renewed effort to move away from niche fitness hardware. https://www.wsj.com/...
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@sam_l_shead
Sam Shead
on x
Former Spotify CFO Barry McCarthy to take over as CEO of Peloton, which is reportedly up for sale. Amazon, Nike and Apple are all said to be interested https://www.wsj.com/...
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@cararlombardo
Cara Lombardo
on x
Re: the possibility of exploring a sale & potential suitors, $PTON CEO and co-founder John Foley told me, “We are open to exploring any opportunity that could create value for Peloton shareholders.” He declined to comment further. https://www.wsj.com/...
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@carnage4life
@carnage4life
on x
Peloton's stock chart is the manifestation of the saying that in the near term the market is a voting machine but over the long term it's a weighing machine. https://twitter.com/...
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@carnage4life
@carnage4life
on x
Peloton lays of 20% of staff and replaces founder CEO with former CFO of Netflix & Spotify who's in his late 60s and understands subscription based content models. They fell into the Clubhouse trap, the pandemic made them misjudge the size of their market https://www.wsj.com/...
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@charlesarthur
Charles Arthur
on x
Peloton CEO stepping “aside” to become exec chair, former Spotify CFO to become CEO. Cutting 2,800 jobs. https://www.wsj.com/... Financial results (expect bad news) later tonight. Share price back where it was at start of 2020. Either a reset, or prep for a sale.
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@susanlitv
Susan Li
on x
#Peloton ⬆️23% on sale talks🚲 From my insights on #Apple strategy They ARE NOT GOING to buy $pton Sorry @DivesTech but $aapl grows organically & they only bought #Beats in largest ever acquisition $3bln for their #music catalogue which they can fold into #applemusic #Amazon https…
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@stephenlweiss
Stephen L. Weiss
on x
Doesn't seem like a $PTON deal is any time soon altho have seen similar CEO moves in past prior to sale but none of them where CEOs had effective control nor did outgoing CEO want to be the one cutting jobs prior to sale & be the bad guy https://www.wsj.com/...
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@0mgould
michael GOULD
on x
i recommend you buy an expensive bike for outdoor use https://twitter.com/...
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@pierce
David Pierce
on x
My hot take is that Nike is clearly the best company to buy Peloton, that Apple absolutely shouldn't, and that Amazon's probably gonna do it https://www.protocol.com/...