Peloton replaces chief financial officer as he manages lingering losses

Interactive Platoon Inc.

is trading its top financial officer about four months after appointing a new chief executive, a move that comes as the fitness equipment maker deals with lingering losses.

The New York-based home exercise equipment company said Monday that Liz Coddington will take on the role of chief financial officer starting June 13. Peloton said its current chief financial officer, Jill Woodworth, had decided to leave after more than four years with the company.

Peloton said Ms Woodworth will remain with the company as an interim consultant to help prepare the financial results for the 2022 financial year.

Ms. Coddington most recently served as Vice President of Finance for Amazon Web Services, a subsidiary of Amazon.com Inc.

subsidiary that provides on-demand cloud computing platforms. Prior to that, she held CFO and CFO positions at companies such as retailer Walmart. Inc.

and streaming company Netflix Inc.

Ms Coddington joins Peloton as the company faces waning consumer demand after facing issues with its ability to meet orders, which soared at the start of the pandemic. Rising demand for Peloton bikes led the company to open a million-square-foot factory in Wood County, Ohio last year.

Peloton is now looking to sell the plant it will never use. The company also cut prices for its equipment, projected slower growth and had to borrow $750 million to fund operations.

Peloton posted its largest quarterly loss since the company went public in 2019 in May, posting a net loss of $757.1 million for the quarter ended March 31, compared to a loss of $8.6 million for the period of the previous year.

In February, Peloton replaced chief executive John Foley with Barry McCarthy, who previously ran finance for digital music service Spotify Technology. on

and Netflix. The company also cut 2,800 jobs amid falling demand for its exercise equipment. Mr Foley has been closely associated with the company’s growth phase after its public offering and the surge in revenue at the start of the pandemic.

The CFO’s seat change makes sense given the ongoing restructuring under Mr. McCarthy, said Rohit Kulkarni, managing director of equity trading and research firm MKM Partners LLC.

“While the new CEO puts his mark on the structure of the organization and aligns it with the direction he wants the company to take, these changes are not completely surprising,” he said.

With Peloton’s fiscal year ending June 30, Ms Coddington will very quickly be ‘under a bigger microscope of investors’, as the company is expected to release guidance for the fiscal year soon after. his arrival, Mr. Kulkarni said. “It will be a difficult task to provide these new directions. »

Write to Jennifer Williams Alvarez at [email protected] and Mark Maurer at [email protected]

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