American exercise equipment firm Peloton has announced key leadership changes calls to have its chief executive step down, WSJ reported.

  • Co-founder John Foley is stepping down as chief executive officer after driving the company in its 10-year existence. He will move on as the company’s executive chair.
  • Foley will be replaced by Barry McCarthy, who previously served as former Spotify and Netflix chief financial officer. He will also step in to join Peloton’s board.
  • Peloton will also cut down its workforce by 2,800 jobs, equivalent to 20% of its corporate positions. The reduction comes as the firm copes with the decline in demand and higher losses, but won’t impact instructor roster or content.
  • The announcements come two weeks after activist investor Blackweels Capital LLC urged the firm to let go of Foley and look into a possible takeover of the firm, which has attracted possible buyers such as Inc. and Nike.

Foley said the company is open to any opportunity which could create value for its shareholders. PTON is down 1.18%, AMZN down 0.09%, and NKE flat premarket.