Peloton just announced sweeping changes to their management team, including the immediate resignation of Executive Chair and Former CEO, John Foley, as well as the resignation of Chief Legal Officer, Hisao Kushi, effective October 3rd.
John Foley was one of Peloton’s co-founders in 2012 and was the company’s CEO until February 2022, when he stepped down and transitioned into the position of Executive Chair. At this same time, Peloton announced major restructuring plans, in an effort to reduce costs and drive up profits. Taking Foley’s spot as Executive Chair will be Karen Boone, a Peloton Board member since 2019, and has served as the company’s Lead Independent Director since October of 2021. Boone arrived at Peloton from Restoration Hardware, where she served as the President, as well as the Chief Financial and Administrative Officer.
Hisao Kushi is also a co-founder of Peloton, and since 2015 has held the position of Chief Legal Officer. Kushi has been integral to the user experience of Peloton by developing and refining the music licensing deals, which make possible the artist series and extensive music catalog that members love so much. Taking Kushi’s place at Peloton is Tammy Albarrán, who will be joining the company from Uber Technologies, where she served as the Chief Deputy General Counsel, as well as Deputy Corporate Secretary. Albarrán will also bring to Peloton her experience in advocacy for diversity, equity, and inclusion within the corporate world.
Of the changes, John Foley stated,
“As I reflect on the journey Peloton has been on since we founded it, I am so proud of what we have built together. From day one, the incredible talent we’ve had on our team and the dedication, hard work, and creativity of every Peloton employee are what got us to where we are today. We founded the company because we wanted to make fitness and wellness convenient, fun, and effective. Because of the work of thousands of people, we’ve done that.
Now it is time for me to start a new professional chapter. I have passion for building companies and creating great teams, and I am excited to do that again in a new space. I am leaving the company in good hands: The Leadership Team with the support of the Board is going to take Peloton to the next level as a company, and I am happy to know our Members are going to continue to be surprised, delighted, engaged, and excited about everything that is in store (looking at you, rower!).
Goodbyes are never easy, but I don’t view this as goodbye. I will always be a Peloton Member and a passionate advocate for our mission. So until we meet again, stay safe and strong. And I’ll see you on the leaderboard.”
Peloton also shared the news on LinkedIn, which also included the fact that Kevin Cornils, the company’s Chief Commercial Officer, will also be departing. Unlike Foley and Kushi, Cornils’ position at the company is not being filled upon his exit, but rather absorbed by another Peloton executive according to CNBC. Cornils has been with Peloton since 2018, and his time with the company will come to an end on September 23rd. Cornils’ oversaw Peloton’s international roll out and successfully aided the company in expanding into the UK, Canada, Germany, and Australia. Dion Sanders, Peloton’s Chief Strategy Officer will acquire many of Cornils’ responsibility and will shift into the new roll and title of Chief Emerging Business Officer.
Additionally, CNBC reports that Jen Cotter, Peloton’s Chief Content Officer, will now also be assuming the responsibility of overseeing Peloton’s apparel and accessory division.
The turnover of these key positions within Peloton come just weeks after Peloton recorded a $1.2 billion operating loss and Peloton CEO Barry McCarthy declared the goal of reaching “breakeven cashflow on a quarterly basis in the second half of FY23”.
You can read Peloton’s press release about the management changes here.
You can read more about Peloton’s management transformation in The Wall Street Journal, CNBC, and many other news outlets.
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