he co-founder of exercise brand Peloton will step down from the leading the company as it plans to cut thousands of jobs, a report has said.
The Wall Street Journal reported that John Foley, chief executive of the firm for 10 years, will step down and be replaced by Barry McCarthy, the former chief financial officer of Spotify.
It also said about 2,800 jobs would be cut due to a drop in demand.
Amazon and Nike are rumoured to be interested in bidding for Peloton.
The BBC has contacted Peloton for comment.
Last month, investment firm Blackwells Capital called for Peloton’s boss Mr Foley to be removed from his post and the business to be put up for sale.
Peloton and its customer base are “extremely attractive” to companies like Nike, Apple, Disney and Sony, that are looking to boost their presence in the home, health and wellness spaces, Blackwells said in a letter to Peloton’s board.
Mr Foley told the Wall Street Journal that the company was “open to exploring any opportunity that could create value for Peloton shareholders” but declined to comment further.
‘A better CEO’
“I have always thought there has to be a better CEO for Peloton than me,” said Mr. Foley. “Barry is more perfectly suited than anybody I could’ve imagined.”
Peloton, which pairs its equipment with streaming and live exercise classes, had seen sales soar of its bikes and treadmills during the pandemic, but the post-lockdown return to gyms has left the firm worth less than a fifth of its peak $50bn valuation.
There have also been recent PR disasters for the company, including when TV characters had heart attacks when using Peloton machines.
A fictional character in the Sex and the City reboot And Just Like That died of a heart attack using a Peloton machine, and there was also a brush with death in Billions.
In August, the firm cut the price of its flagship bike by 20% to $1,495 (£1,105), as it revealed that losses had widened and revenue growth had slowed.
In the same month, the US Department of Justice and the Department of Homeland Security said they were investigating the company after a child was pulled under one of its treadmills and killed, while other customers had reported injuries.
Amazon has declined to confirm or deny whether it is considering making an offer for Peloton.
Analysts at Wedbush Securities have said they expect other bidders to emerge, with a “Apple vs. Amazon/Nike/Disney for Peloton potentially on the cards”.
“We would be shocked if Apple is not aggressively involved in this potential deal process,” they said.
Analysts have estimated that Peloton could be valued between $12bn and $15bn, depending on timing and the competition.