John Foley, the CEO of struggling connected-exercise-machines-maker Peloton, will be stepping down from his job and transitioning to the role of executive chair, reports The Wall Street Journal. Foley will be replaced by Barry McCarthy, the former chief financial officer of Netflix and Spotify.
The news of Foley’s departure comes ahead of Peloton’s second-quarter results after the bell later today. Since the beginning of the year, reports of slowing sales have hounded the company and sent Peloton’s shares tumbling. In recent weeks, some investors have urged the company to sell itself to big tech giants like Amazon or Apple.
Along with the news that Peloton will see a CEO change, the company also confirmed to the WSJ that it will initiate cost-cutting measures, including cutting 2,800 jobs and reducing the warehouse space it owns.
Peloton stock surged over 20% yesterday on rumors it was seeking a buyer. But after the news of the CEO shakeup today, the stock is down over 3% in the pre-market trading as of the time of this writing.