- Peloton's co-founder and former CEO, John Foley, has severed his last ties to the company.
- The company announced Foley will step down as the company's executive chairman, effective Monday.
Peloton co-founder and former CEO John Foley is officially severing his final ties to the embattled exercise company.
Peloton announced that Foley is stepping down as the company's executive chairman, effective Monday. The company has appointed Karen Boone, the Peloton board's current Audit Committee Chair, to take his place.
"Now it is time for me to start a new professional chapter. I have passion for building companies and creating great teams, and I am excited to do that again in a new space. I am leaving the company in good hands," Foley said in a statement announcing his departure.
Before his role as executive chairman, Foley served as Peloton's CEO until February of this year.
With Foley at the helm, Peloton saw an explosion in popularity of its connected fitness bikes and treadmills, partially fueled by pandemic lockdowns forcing gyms and fitness studios to temporarily shutter.
However, the final months of Foley's tenure as CEO were marred by controversy and plunging demand.
Foley found himself in hot water after a child was fatally injured due to an accident with Peloton's treadmill last year. Foley initially pushed back on growing calls for a recall, calling warnings "inaccurate and misleading" before acquiescing.
The company also paused production of new equipment after a "significant reduction" in global demand earlier this year. One employee told Insider that the company's warehouses were "unsafely packed."
Peloton has attempted to turn its fortunes around under Barry McCarthy, the company's current CEO. But Peloton faces an uncertain future, laying off 2,800 workers in February and another 800 last month.
Another Peloton co-founder, Hisao Kushi, also stepped down on Monday.