Peloton is looking to experienced tech executive Barry McCarthy to lead the company back into investors’ good graces and stabilize its business after a few roller coaster years.
McCarthy, who previously served as CFO of Spotify, is replacing Peloton co-founder John Foley as chief executive of the fitness company, while Foley becomes executive chairman. The company also cut its revenue forecast, announced plans to slash 2,800 jobs and overhauled its board in a flurry of news on Tuesday morning.
“Barry is a proven leader, well known for his financial acumen and record of driving transformative change at iconic companies including Netflix and Spotify,” Karen Boone, lead independent director of Peloton’s board and former RH CFO, said in a statement.
McCarthy, 68, began working at Spotify in 2015, a year after he joined the company’s board. He’s credited with pushing the company to pursue a direct listing to go public, helping the company avoid the traditional fees and hoops of an initial public offering. McCarthy left the music streaming company in early 2020 but rejoined its board. He also currently serves on the board of Instacart.
Prior to joining Spotify, McCarthy was Netflix’s CFO for eight years under co-founder Reed Hastings. He took the company public while it was still known for shipping DVDs to customers’ mailboxes. By the time he left the company in late 2010, Netflix had begun streaming television shows and movies on its website and was about to split subscription plans for renting DVDs and streaming.
“He’s not only recognized as an expert in running subscription business models and helping category-leading digital streaming companies flourish, but he has also had tremendous success in partnering with founder CEOs at other brands. I’m excited to learn from him and work alongside him as Executive Chair,” Foley said in a statement.
In between his time at Netflix and Spotify, McCarthy briefly served as chief operating officer for Clinkle, a mobile payments company. He has also sat on the boards of Eventbrite, Pandora, Rent the Runway, Chegg and NatureBox. His first CFO role was at Music Choice, a music programming company, from 1993 to 1999.
Shares of Peloton were up 2.8% in premarket trading. The stock has tumbled 79% over the last 12 months, dragging its market value down to $10 billion.