Peloton swaps CFO as it wanders into ongoing losses

Interactive Peloton a company

It is changing its chief financial officer about four months after being appointed as a new CEO, a move that comes as the fitness equipment maker suffers ongoing losses.

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

Peloton said mrs. Woodworth will remain with the company as an advisor on an interim basis to help prepare the financial results for the 2022 fiscal year.

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

A subsidiary company that provides on-demand cloud computing platforms. Prior to that, she held CFO and leadership positions at companies including the Walmart retailer a company

and streaming business Netflix a company

Ms. Coddington joins Peloton as the company deals with sagging consumer demand after facing issues over its ability to meet orders, which spiked during the early stages of the pandemic. An increase in demand for Peloton bikes prompted the company to set up a million-square-foot plant in Wood County, Ohio, last year.

Peloton is now looking to sell the plant you’ll never use. The company also lowered prices for its equipment, forecast slower growth and had to borrow $750 million to finance its operations.

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

In February, Peloton replaced John Foley CEO Barry McCarthy, who had previously led the finances of digital music service Spotify Technology. SA

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

The change in the CFO position makes sense given the ongoing restructuring under the leadership of Mr. McCarthy, said Rohit Kulkarni, managing director of research and stock trading firm MKM Partners LLC.

“As the new CEO makes his mark on the organization’s structure and alignment with where he wants the company to go, these changes aren’t entirely surprising,” he said.

With Peloton’s fiscal year ending on June 30, Ms. Coddington will be so fast “under a bigger investor microscope,” that the company is expected to release fiscal year guidance immediately upon joining, Mr. Kulkarni said. “It will be a difficult task to provide this new guidance.”

write to Jennifer Williams-Alvarez at jennifer.williams-alvarez@wsj.com and Mark Maurer at Mark.Maurer@wsj.com

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