Last modified on Tue 8 Feb 2022 09.07 EST<\/p>\n

Peloton, the troubled exercise equipment company, is replacing its chief executive and planning to axe 2,800 jobs as it deals with a post-pandemic sales crash.<\/p>\n

Co-founder John Foley, who has led the company for its entire 10-year existence, will step down as chief executive and become executive chair, the company told the Wall Street Journal, while the company will cut about 20% of corporate positions.<\/p>\n<\/p>\n

The move comes weeks after activist investor Blackwell Capital called for Peloton to fire Foley and explore a sale of the company. Amazon and Nike have reportedly expressed interest.<\/p>\n

Barry McCarthy, former chief financial officer of Spotify and Netflix, will become chief executive and president and join Peloton\u2019s board, according to the Journal.<\/p>\n

Peloton became one of the highest-profile successes of the pandemic as people canceled gym memberships and bought its exercise bikes and treadmills to work out from home.<\/p>\n

Investors snapped up shares and the company was valued at $50bn in January 2021. But as the pandemic waned, sales slipped and a series of incidents left the company\u2019s shareholders feeling jittery.<\/p>\n

Last May, Peloton recalled its two treadmills after death of a child and dozens of other injuries.<\/p>\n

In November, the company reported sales in 2022 will be up to $1bn lower than expected. In December, Peloton\u2019s shares collapsed again following the on-screen death of the Sex and the City character Mr Big while riding a Peloton in the series reboot, And Just Like That.<\/p>\n

Peloton is currently valued at about $9bn, having risen in value on speculation of a takeover.<\/p>\n

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