Peloton ergometer is visible after the bell rang at the opening of the company’s IPO on the Nasdaq Market website in New York, New York, USA, September 26, 2019.
Shannon Stapleton Reuters
Peloton’s chief financial officer, Jill Woodworth, is leaving the company and will be replaced by Liz Coddington, chief executive of Amazon Web Services, effective next week, the company said Monday.
The show marks another departure from the leading positions of the home fitness company. Earlier this year, Peloton appointed Barry McCarthy, a former CFO at Netflix and Spotify, as CEO.
McCarthy took the helm of founder John Foley at a time of intense turmoil in the company, which is suffering from rising costs and declining demand. He started the company with an aggressive cost restructuring plan that focuses in part on recurring subscription revenues.
“Liz is an extremely talented CFO and will be an invaluable addition to Peloton’s leadership team,” McCarthy said in a statement. “Having worked in some of the strongest and most recognizable technology brands, she not only brings the expertise needed to manage our financial organization, but also critically understands what is needed to stimulate growth and operational performance. I have seen her intelligence, abilities and leadership first hand and I am excited to work closely with her as we complete the next phase of Peloton’s journey. “
Previously, Codington had roles on Walmart.com and Netflix. Woodworth has been with Peloton since 2018 and will remain with the company as a consultant on a temporary basis, according to the announcement.
Peloton has come under pressure in recent months from activist investor Blackwells Capital, which recently in April urged the company to consider a sale.
The manufacturer of connected bicycles and treadmills is struggling to sustain its growth since the pandemic era. In January, CNBC announced that the company had given in to its ambitious sales forecasts, and in February it cut 2,800 employees.
McCarthy said during his first conference call on profits at the helm of the company that he was surprised to learn how upset the supply chain is and how fast the company’s coffers are shrinking.
In May, the company signed a binding letter of commitment with JPMorgan and Goldman Sachs to borrow $ 750 million in five-year term debt in a bid to return the business to positive free cash flow.
– Lauren Thomas of CNBC contributed to this report.
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