Peloton has announced that its chief financial officer, Jill Woodworth, is leaving the company and will be replaced by Liz Coddington, director of Amazon Web Services, effective June 13. Woodworth has served as CFO of Peloton since 2018 and will serve as a consultant to Peloton on an interim basis.
Coddington, now faced with the task of turning Peloton’s finances around, most recently served as the vice president of finance for Amazon Web Services. Prior to this position, Coddington held executive positions at companies such as Walmart and Netflix.
“Liz is a highly talented CFO and will be an invaluable addition to Peloton’s leadership team,” Peloton CEO Barry McCarthy said in a statement. “Having worked at some of the strongest and most recognizable technology brands, she not only brings the expertise needed to run our finance organization, but she also has a critical understanding of what it takes to drive growth and operational excellence . I have seen her intellect, abilities and leadership first hand and am excited to work closely with her as we carry out the next phase of Peloton’s journey.”
The change marks another departure from the top of the company, after McCarthy, a former Spotify and Netflix executive, took over the reins of the company after former Peloton CEO John Foley stepped down in February 2022. At the same time, Peloton announced that it was cutting 2,800 jobs worldwide, about 20% of its corporate workforce, “at every level of the organization.”
McCarthy took the reins from Foley at a time of uncertainty at the affiliate fitness brand, culminating in a slump in demand. While the brand did well prior to COVID-related shutdowns and had amassed an almost cult-like following, the widespread gym shutdown proved to be a huge acceleration. Meanwhile, this year has been marked so far by reports of slowing demand and corrective action.
Peloton’s financial results released May 10 showed the company missed revenue estimates by $6 million and reported $964.3 million, down from the $1.26 billion reported in the same quarter last year. Losses for the quarter were $757.1 million.
After the release of the earnings, McCarthy identified three main goals: “1. Stabilize cash flow 2. Get the right people in the right roles and 3. Grow again.” He noted that Peloton hired former Grove Collaborative COO Andy Rendich to manage the company’s supply chain and help better match inventory with demand.
The company also increased its monthly subscription fee on June 1, with the cost of the all-access subscription increasing from $39 to $44 in the United States and from $49 to $55 in Canada. At the same time, Peloton also announced that it was cutting the price of its fitness equipment in an effort to make its hardware more affordable. The company had outlined that the price changes were part of McCarthy’s vision to grow the company’s community.
Last month, it was reported that Peloton was courting investors to take a 15-20% stake in a bid to bring in additional cash amid ongoing battles. Previous reports suggested it was investigating an outright sale to bidders, including Amazon. It has since been suggested that the company wants to increase sales before making an outright sale.