Peloton CEO John Foley will step down as CEO, moving to role of executive chair, and be replaced by Barry McCarthy, as the embattled cycling giant struggles to turn around its business.
Shares topped the most actively traded board on Tuesday on pace for the single percentage gain on record which is 27.4% if gains hold through the closing bell.
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Additionally, the company cut revenue guidance to as much as $3.8 billion, down from $4.8 billion amid a major restructuring plan.
The company also plans to cut 2,800 positions. However, instructors will be spared.
|SONY||SONY GROUP CORP.||92.26||+1.72||+1.90%|
The developments come after reports surfaced that as many as five companies were eyeing a potential takeover; Amazon, Nike, Apple, Disney and Sony.
The stock has lost over 80% of its value in the past 12-months as the cycling giant deals with a perfect storm of events that have become a public relations crisis.
Most recently, in the "Sex and the City" reboot, the character of Mr. Big (played by Chris Noth) died while spinning on the bike. While the company used him to counter the negative scene in a television ad, multiple women came out against him for sexual harassment and the ad was pulled. In the series "Billions," one of the leading characters suffers a heart attack on the bike.
The company, which saw sales surge during the pandemic, experienced a slowdown in sales and demand. Reports surfaced that it was pausing production of both bikes and their treadmill.
Last year, the company was linked to the death of a child forcing the Consumer Product Safety Commission to recall its Tread+ machines.
At the time, Peloton CEO John Foley spoke out about the "unthinkable" death of a child who was tragically pulled under a Tread+ machine and reiterated the company had made a "mistake" in its communication strategy.