Mr Foley, who has led the company since its foundation a decade ago, will become executive chairman and retain the supervoting stock with which he and other executives control the company.
On a call with investors on Tuesday, Mr Foley acknowledged that he had made “missteps”. “To meet market demand we scaled our operations too rapidly and we overinvested in some areas of our business,” he said. “We own this. I own this and we’re holding ourselves accountable,” he added. Shares in the company jumped 27 per cent to $37.84 by early afternoon, as analysts said the board shake-up made it more likely that Peloton would feel shareholder pressure to sell the company.
In a memo, Mr Foley told staff who were being laid off that they could keep their Peloton membership for a year. The company, which went public at a valuation of $7.7 billion in September 2019, shot to a market capitalisation of nearly $50 billion by the end of 2020 as lockdowns at the onset of the coronavirus pandemic drove thousands of new customers to sign up for its signature stationary bikes and video classes.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: businessposthq - 🏆 8. / 71 Read more »