Peloton CEO John Foley to step down, transition to executive chair as company cuts 2,800 jobs, says report

John Foley, CEO of Peloton.

Adam Jeffery | CNBC

Peloton plans to replace CEO John Foley and cut 2,800 jobs as it hopes to restructure its business amid waning demand, according to a report in the Wall Street Journal.

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Barry McCarthy, the former chief financial officer of Spotify and Netflix, will become CEO and president and join Peloton’s board, the report said.

The job cuts are expected to impact about 20% of Peloton’s corporate positions, but they won’t affect Peloton’s instructor roster or content, according to the Journal.

A Peloton spokesperson did not immediately respond to CNBC’s request for comment.

The news of Foley stepping down comes ahead of Peloton’s fiscal second-quarter results, which are set to come after the market closes on Tuesday.

William Lynch, Peloton’s president, is also expected to step down from his executive role but remain on the board, Foley said in an interview with the Journal. Erik Blachford, a director since 2015, is expected to leave the board, and two new directors will be added.

Roughly a week ago, activist Blackwells Capital — which has a less than 5% stake in the company — sent a letter to Peloton’s board urging Foley to quit his role as CEO, and asking the company to consider selling itself.

Reports have since circulated that potential suitors could include Amazon or Nike. However, Foley along with other Peloton insiders had a combined voting control of roughly 80% as of Sept. 30, which would make it practically impossible for any deal to go through without their approval.

This is breaking news. Please check back for updates.

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