Peloton co-founder and Chief Product Officer Tom Cortese is stepping down from his role and transitioning into an advisory position, effective from November 1, the company has announced. Cortese, who played a pivotal role in launching the connected fitness company alongside former CEO John Foley in 2012, will be succeeded by Silicon Valley veteran Nick Caldwell.
Caldwell, known for his extensive experience with tech giants like Twitter, Google, Reddit, and Microsoft, will assume the role of overseeing global product development for Peloton. His appointment comes at a crucial juncture for the company as it focuses on expanding its subscriber base and connected fitness hardware offerings.
Peloton CEO Barry McCarthy expressed gratitude to Cortese for his significant contributions to the company, highlighting that his dedication had been instrumental in Peloton’s growth. The change in leadership comes amid ongoing shifts within Peloton’s executive team, with McCarthy making several key hires since taking the helm.
Cortese’s departure marks a significant shift for Peloton, as he was among the few remaining executives from the company’s early days in its C-suite. The change in leadership also comes as Peloton increasingly pivots toward a subscription-based revenue model, with subscription income emerging as the primary driver of revenue.
While Peloton initially gained fame for its high-end connected fitness products like the Peloton Bike and Bike+, recent recalls and legal issues have shifted the company’s focus toward subscription services. The company has also been grappling with supply chain challenges and increased competition in the fitness tech market.
Peloton’s strategic shift involves offering a broader range of subscription services, making its app central to its business strategy. Despite this shift, the company continues to maintain its hardware development efforts while prioritizing its subscription offerings.