Mendez runs a private AI company for supply-chain management, and Mildenhall is the former chief marketing officer for AirBNB.Įrik Blachford, who has served as a director since 2015, will step down. Peloton also said on Tuesday that it appointed two new directors, Angel Mendez and Jonathan Mildenhall, to its board. 'Foley has proven he is not suited to lead Peloton, whether as CEO or Executive Chair, and he should not be hand-picking directors, as he appears to have done (on Tuesday),' said Aintabi.
Jason Aintabi, Blackwells' chief investment officer, accused Foley of 'repeated failures' including hiring his wife as vice president of apparel.īlackwells, however, said Tuesday's moves did not address investors' concerns. The investment firm called for his removal and even urged the company to sell itself, blaming the stock's underperformance to 'gross mismanagement,' Foley's poor decision making and a lack of credibility. Shares have since tumbled nearly 80 percent. Outgoing CEO Foley has drawn the ire of activist investor Blackwells Capital in recent months as the company struggled to maintain the breakneck growth that propelled its valuation to $52 billion in early 2021. Outgoing CEO John Foley co-founded Peloton with his wife Jill Foley (with him above) but some activist investors questioned her appointment as an executive at the company The terms of his personal severance package were not immediately clear. The layoffs are only targeted at corporate staff and will not affect Peloton fitness instructors, some of whom have become quasi-celebrities with large followings.įoley, the company's co-founder who has led the company for nearly a decade, will step down as CEO and will become the executive chair.
The company expects to spend about $130 million in total cash on severance packages as part of the restructuring, as well as $80 million in non-cash charges.
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In a memo, Foley said that the axed employees would get 12 months of free fitness classes as part of their severance packages, a value of about $468, according to the New York Post.Īlthough the severance packages will also include extended health benefits and other undisclosed remuneration, the inclusion of the free class drew blowback and struck some observers at tacky. Some Peloton employees reportedly learned that they were among the 20 percent of global staff laid off when they found their access to to the company's Slack channel switched off on Tuesday morning. Shares of Peloton surged 25.28 percent on Tuesday, closing at $37.27, after the company issued a flurry of announcements on cost-cutting and reorganization, following an 80 percent dive in the company's valuation over the past year. Peloton is replacing its CEO and co-founder John Foley and slashing 2,800 jobs in a desperate bid to cut costs and revive the struggling exercise company.īarry McCarthy, the former chief financial officer of Spotify and Netflix, will take the helm as Peloton's new CEO starting on Wednesday.