Business is booming.

2 Peloton Founders Are Leaving the Company

Two Peloton founders announced their resignations Monday, as part of a management reshuffle at the connected bicycle and fitness equipment maker that was a pandemic winner but whose stock price has lost more than two-thirds of its value this year.

One of the founders, John Foley, who was also chairman and former CEO, is leaving the company with immediate effect. Hisao Kushi, another founder and the chief legal officer, will leave on Oct. 3, according to a company statement.

After peaking during the early part of the pandemic, when people were isolated at home and unable to exercise in gyms, Peloton announced a $1.2 billion quarterly loss last month and has lost money for six quarters in a row. Peloton declined to comment.

Barry McCarthy, the chief executive since February, has been working to turn the company around — he said last month that Peloton would focus on “value conscious consumers” — after a series of challenges threatened his business.

Mr. Foley served as Peloton’s chief executive for ten years and was appointed executive chair in February. He will be replaced as chairman of Peloton’s board of directors by Karen Boone, who was elected to Peloton’s board of directors in 2019.

Mr. Kushi has been the company’s Chief Legal Officer since 2015. platoons pronunciation on Monday to the Securities and Exchange Commission, announcing the changes in its leadership, Mr. Kushi credited with making “the new music licensing agreements that are the backbone of the member experience,” among other contributions.

Tammy Albarrán, who was the deputy general counsel at Uber, will replace Mr. Kushi as Chief Legal Officer and Corporate Secretary in October.

Mr Foley said he was proud of what the Peloton team had built. “Now is the time for me to start a new professional chapter,” he said in the company’s statement. “I’m passionate about building businesses and creating great teams, and I’m excited to do that again in a new space.” He added that he would remain a member of the Platoon, saying, “I’ll see you on the scoreboard.”

Peloton was a high flyer in the early days of the pandemic, when demand for its products skyrocketed during the lockdown. However, it soon became plagued with supply chain and delivery challenges. The company ramped up production to meet rising demand, only to find a plethora of machines as consumers returned to gyms. Negative television images, as well as a recall of the treadmills after injuries and the death of a child were linked to the products, led to further turbulence for the company.

In February, when Mr. McCarthy took over as CEO, the company laid off about 20 percent of its workforce, some 2,800 employees. Since then, Peloton has laid off more workers, announced plans to close stores and said it would outsource the production of its bicycles and treadmills to a company abroad. The company said last month it would sell its bikes on Amazon in an effort to expand distribution.

In the pronunciationMr. McCarthy thanked Mr. Foley and Mr. Kushi for their hard work and congratulated their replacements saying, “I am confident that both will use their unique experiences to drive the company forward into our next growth chapter.”