Peloton’s top leadership experiences a significant shift

Peloton finds itself in the midst of transformative winds.

On Tuesday, a flurry of LinkedIn updates from departing Peloton staff, alongside industry insiders offering support, fills the digital space. Among them, a notable departure is announced by the former CEO of Precor.

In December 2020, Peloton made waves with its $420 million acquisition of commercial fitness titan Precor. This move was aimed at bolstering production capabilities to meet anticipated high demand. It marked a milestone as Peloton’s largest acquisition to date. With this acquisition, Peloton gained access to 625,000 square feet of manufacturing space across the U.S., equipped with in-house tooling, fabrication, product development, and quality assurance facilities in North Carolina and Washington.

However, as demand for Peloton’s bikes and treads dwindles, Rob Barker, former CEO of Precor and current Senior Vice President of Commercial at Peloton, bids farewell. Joining him in departure is his direct report, William Lynch, though Lynch will retain a seat on Peloton’s board.

“After a fulfilling 27-year journey spanning various roles at Precor, Amer Sports, and Peloton, I embark on a new chapter,” Barker announced on LinkedIn, reflecting on his tenure. “My next venture marks a significant shift, transitioning from a corporate executive to a small entrepreneur and advisor within the fitness industry. My passion for this sector remains unwavering. I’ve had the privilege of collaborating with exceptional individuals at Precor, our clients, partners, and more recently, at Peloton. I look forward to continuing this journey, focusing on companies dedicated to ’empowering people to lead fulfilling lives.’ Naturally, I will refrain from engaging with entities in direct competition with Precor or Peloton.”

Barker’s announcement precedes Peloton’s revelation of Barry McCarthy’s appointment as CEO, effective Wednesday. McCarthy steps in, succeeding founder and incumbent CEO John Foley, who assumes the role of Executive Chairman. Concurrently, Peloton announces plans to streamline operations by slashing 2,800 jobs, aligning costs with the evolving market landscape.

The strategic maneuvers indicate Peloton’s recalibration of its total addressable market (TAM) projections, among other strategic considerations. Peloton aims to achieve $800 million in cost reductions while also trimming capital expenditures by $150 million in 2022.

As Peloton braces for change, Foley acknowledges the emotional toll of organizational transitions in a heartfelt letter to employees. “Farewells are never easy, especially within a close-knit culture like ours. Our commitment extends beyond creating a great workplace; it includes fostering an environment you’re proud to be part of, both present and future. Despite the challenges, we’re steadfast in our dedication to our collective achievements,” writes Foley.

McCarthy, renowned in financial circles for his instrumental role in Spotify’s 2018 direct listing, assumes leadership at Peloton. Formerly CFO at Spotify and Netflix, McCarthy’s expertise in financial stewardship is well-established. Additionally, his tenure as a board member at Instacart underscores his continued engagement with innovative ventures.