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Peloton on Thursday named Ford executive Peter Stern as its new CEO, tasking him with trying to turn around the high-end sports company.
He is the company’s third CEO in less than three years.
Stern, currently president of Ford Integrated Services, will become CEO and join the company’s board of directors in January 2025.
Jay Hoag, Peloton’s board chairman, said Stern is “a seasoned strategist with a track record of driving sustainable growth through innovation.
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“We have great confidence in his ability to lead the Peloton at this critical time,” said Hoag. “He brings sound expertise in growing technology-focused platforms and has a deep understanding of the health and wellness industry – making him uniquely qualified to serve as Peloton’s next CEO.”
A person walks past a Peloton store in Manhattan on Jan. 25, 2022. (Reuters/Carlo Allegri/File Photo/Reuters Pictures)
Karen Boone and Chris Bruzzo were named CEOs and co-presidents in May after former CEO Barry McCarthy was fired.
Makhathini took over John Foley in February 2022and was tasked with turning around the company, which faced a post-pandemic slump and struggled to navigate after the tragic death of a child involving one of its instruments. But efforts to change the situation were unsuccessful.
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After an increase in business during the pandemic, the company struggled to remain operational as people returned to traditional exercise activities when social distancing restrictions eased. To combat declining sales, it implemented various initiatives to cut costs and expand its customer base.
A man rides a Peloton Bike. (Peloton)
It laid off hundreds of workers, raised the prices of its equipment, foreign production to a Taiwanese company and began selling its products outside of its stores on Amazon and retailers like Dick’s Sporting Goods to attract more customers.
It also made its app more accessible by offering more membership tiers and offering more classes for free.
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Under McCarthy, the company built partnerships with Hyatt and Lululemon. But the company said it is still trying to reconcile its cost structure with the current size of its business.
The problems are not over. Peloton estimated Thursday that the holiday quarter will be softer than expected.