Peloton chief executive and co-founder John Foley is stepping down from his role but will remain at the company as an executive chair, The Wall Street Journal reported.
Former Spotify and Netflix chief financial officer Barry McCarthy will replace Foley as the company’s new chief executive and president.
Peloton is also cutting 2,800 jobs as part of the restructure, amounting to around 20% of the company’s corporate workforce.
READ MORE: What has gone wrong for Peloton?
One of the company’s investors Blackwells Capital urged the exercise equipment maker’s board to fire Foley and sale the company to a leading tech or fitness brand such as Amazon or Nike.
Foley and other Peloton executives had a combined voting control of around 80% as of 30 September, according to Reuters, meaning that any potential takeover deal would be virtually impossible without their approval.
Peloton was at one point of the pandemic’s biggest winners, seeing it hit a valuation of $50 billion as consumers scrambled to keep fit during lockdown.
However a number of scandals and bad PR has meant the company’s share price tumbled over 80% and is now valued at $9.7 billion.