Companies Fearless to change CEO and cut 20 percent of staff – Korona-time rocket share price rises more than 50 percent this week

American fitness equipment manufacturer Peloton Interactive is changing its CEO and drastically reducing its staff.

The company announced Tuesday that the company’s long-term CEO and one of the founders John Foley resigns as President and CEO and remains the head of the company’s Board of Directors.

He has been appointed CEO of the company as of Wednesday Barry McCarthywho previously worked as CFO of the streaming company Spotify and Netflix.

The company also said it will cut about 2,800 jobs, or about 20 percent of its staff. The cuts will reduce the company’s cost by at least $ 800 million, the company said.

Fearless is known for fitness equipment and related fitness videos. Demand for its products rose sharply during the movement restrictions of the corona pandemic as consumers fled the coronavirus in their homes.

However, demand for the products has declined as the pace of vaccination has progressed, gyms have opened up and competing products have entered the market.

In connection with its earnings announcement on Tuesday, the company lowered its full-year revenue guidelines.

The company the share price has risen sharply this week. The share paid $ 24.6 after the New York Stock Exchange closed on Friday. By the end of Tuesday, the price had already risen to $ 37.27. On the secondary exchange, the price was already even higher.

The share price has thus risen by more than 50 percent in two days. The share price has been partly boosted by rumors that Amazon and Nike are considering buying an exercise bike company.