Peloton co-founders John Foley and Hisao Kushi leave the company

John Foley, co-founder and former CEO of Peloton.

Michael Nagle | Bloomberg | Getty Images

Platoon announced the resignation of two of the company’s founders and another senior executive on Monday, marking the end of an era for the struggling fitness equipment company as CEO Barry McCarthy radically reshapes the business.

Co-founder and former CEO John Foley stepped down as executive chairman of the board effective Monday. Co-founder Hisao Kushi will step down as the company’s chief legal officer on October 3. Chief Commercial Officer Kevin Cornils, who has been with the company since 2018, will leave on September 23.

Foley was CEO of Peloton for almost 10 years before resigned in February, coinciding with a large series of layoffs. McCarthy took the helm, and Foley moved on to executive chairman.

“There would be no Peloton without John Foley or Hisao Kushi,” McCarthy wrote to Peloton employees. “Without John’s unwavering commitment to his dream, there would be no passionate and dedicated community of nearly 7 million Peloton members. I want to thank John for leading the way.”

Peloton, which went public in 2019, thrived during the early days of the pandemic as gyms closed and people stayed home to train. Shares of the company hit a high of around $167 in October 2020. As of Monday’s close, however, the stock was at $11.05, down nearly 70% this year alone.

The moves announced on Monday represent the latest wave of reshuffles under McCarthy, who came to Peloton after tenures at Netflix and Spotify. He has been pushing his Peloton recovery plan since he took on the role of CEO and realized the depth of the problems plaguing the company.

McCarthy’s changes have included introducing rental options for company bikes, certifying used bikes for resale, selling bikes and other products on Amazonand pushing to expand Peloton’s digital subscriber reach.

Karen Boone, former president of Catering equipmentwill replace Foley as chairman of the board.

Kushi will be replaced by Tammy Albarran, UberChief Deputy General Counsel. Albarrán, as a partner at Covington & Burling, helped lead an investigation into Uber’s work culture prior to its 2017 IPO. “Albarrán oversaw Uber’s global legal teams and was a driving force of the company’s cultural transformation,” McCarthy wrote in a Monday press release that called the changes at Uber “profound.”

Chief strategy officer Dion Sanders, who has overseen many of McCarthy’s changes, will assume the new title of director of emerging business as he takes on many of the responsibilities of Cornils, the outgoing chief commercial officer. The company also signaled its commitment to its apparel and accessories efforts, which will be officially overseen by Jen Cotter, Peloton’s Chief Content Officer.

Foley, for his part, congratulated the management team he is leaving behind and hinted at a new venture.

“Now is the time for me to start a new professional chapter,” Foley said in Monday’s statement. “I have a passion for building businesses and building great teams, and I’m excited to do it again in a new space.”

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