Peloton Co-founder and Executive Chair John Foley and Co-founder and Chief Legal Officer Hisao Kushi have resigned, effective September 12 and October 3, 2022, respectively. Karen Boone, former Chief Financial and Administrative Officer at Restoration Hardware, has been appointed Chairperson of the Board, while Uber veteran Tammy Albarrán was named Chief Legal Officer and Corporate Secretary.
Foley and Kushi have remained heavily involved with Peloton since they founded the company in 2012. Foley was CEO from the founding through February 2022, when current President and CEO Barry McCarthy was appointed as the retailer pursued cost-cutting measures, including 2,800 layoffs. Kushi took on the role of Chief Legal Officer in 2015 and has helped Peloton execute its merger and acquisition activities, craft its music license deals and protect its IP.
“We are immensely grateful to John and Hisao for having the vision, ambition and commitment to turn Peloton into the iconic consumer brand it is today,” said Boone in a statement. “Not only did they succeed in building a great company, they transformed an entire industry by leveraging fitness and technology. Their impact will resonate long after their departure.”
The executive shakeup comes as Peloton continues to look for ways to improve its performance. The company will soon expand its rental program nationwide, which will let shoppers join the program and receive a Bike or Bike+ for a monthly fee, with an option to buy the bike outright. Both subscriptions include the cost of an All Access Membership and unlimited access to Peloton’s entire library of live and on-demand classes.
The basic Peloton Bike and All Access Membership costs $89 per month, while the bike costs $895 to purchase after 12 months. The Peloton Bike+ and All Access Membership subscription is $119/month and $1,595 to purchase the bike after 12 months. Both programs also include a $150 one-time setup fee.
“As the global leader in the connected fitness space, we are committed to delivering convenient, engaging and motivating workout experiences to a broad array of consumers who want to be the best version of themselves anytime, anywhere,” said Dara Treseder, SVP, Global Head of Marketing, Communications & Membership at Peloton in a statement. “Our expanded national rental program allows even the most value-conscious customers to fully immerse in the Peloton experience.”
Peloton also has been working to reach a broader customer base by selling some of its products at Amazon’s U.S. stores. The Peloton Bike, Guide and select accessories and apparel are available through the partnership, which is the only way to acquire them outside of Peloton’s own ecommerce site, inside sales channels and showroom.