Peloton Interactive Inc.
replaces its chief financial officer about four months after appointing a new CEO, a move that comes as the fitness equipment maker navigates in persistent losses.
The New York-based home training company said Monday that Liz Coddington will serve as CFO from June 13. The peloton said that the current CFO, Jill Woodworth, decided to quit after more than four years in the company.
Peloton said that Woodworth will remain in the company as a consultant on a temporary basis to help prepare the financial year 2022 financial results.
Ms. Coddington most recently served as CFO of Amazon Web Services, an Amazon.com Inc.
subsidiaries that provide on-demand cloud computing platforms. Prior to that, she held CFOs and management economics in companies including retailer Walmart Inc.
and streaming business Netflix Inc.
Coddington joins the Peloton as the company handles declining consumer demand after facing problems with the ability to meet orders, which increased in the early stages of the pandemic. The increase in demand for Peloton bikes led the company to break ground on a one million square foot factory in Wood County, Ohio, last year.
Peloton is now looking to sell the factory that it will never use. The company also cut the prices of its equipment, estimated lower growth and had to borrow $ 750 million to finance operations.
Peloton reported its largest quarterly loss in May since the company was listed in 2019, and reported a net loss of $ 757.1 million for the quarter ended March 31, compared to a loss of $ 8.6 million the year before.
In February, Peloton replaced CEO John Foley with Barry McCarthy, who previously managed the finances of the digital music service Spotify Technology on
and Netflix. The company also cut 2,800 jobs due to reduced demand for exercise equipment. Mr. Foley was closely linked to the company’s growth phase following the public offering and the increase in revenue early in the pandemic.
The change in the CFO seat makes sense given the continued restructuring under Mr. McCarthy, said Rohit Kulkarni, CEO of stock trading and research firm MKM Partners LLC.
“As the new CEO makes his mark on the organization’s structure and adapts it to where he wants the company to go, these changes are not entirely surprising,” he said.
With Peloton’s fiscal year ending June 30, Coddington will very quickly be “under a larger investor microscope,” as the company is expected to issue fiscal guidance shortly after joining, Kulkarni said. “It will be a challenging task to provide the new guidance.”
Write to Jennifer Williams-Alvarez at email@example.com and Mark Maurer at Mark.Maurer@wsj.com
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