Peloton (NASDAQ: PTON) is in the process of a major business overhaul, according to a report in the Wall Street Journal.

Founder and CEO John Foley will transition to the role of Executive Chair while Barry McCarthy, the former CFO of Spotify and Netflix, will become the new CEO and President.

“I have always thought there has to be a better CEO for Peloton than me,” Foley told WSJ. “Barry is more perfectly suited than anybody I could’ve imagined.”

McCarthy acted as a consultant to Technology Crossover Ventures while also being on the Instacart and Spotify boards. He was the streaming company’s CFO until 2020.

“Together we can make a complete grown-up and build a really remarkable business,” Mr. McCarthy said.

Moreover, Peloton told WSJ that it is planning to slash its workforce by 20%, or 2,800 jobs. The company will cut $800 million in annual costs and slash capital expenditures by $150 million this year.

“Where the company got over its skis is it built out a cost structure as if Covid was the new normal,” McCarthy added.

Although Foley signaled he would be open to listening to offers for Peloton, these changes indicate that he sees Peloton as an independent company going forward.

“We are open to exploring any opportunity that could create value for Peloton shareholders,” Foley said.

He and other insiders control from 75% to 80% of the company’s voting power, according to several reports.

Peloton also said that President William Lynch will step down from his role but remain on the board while director Erik Blachford will leave. Two new additions to the board are Angel Mendez, who will be focused on the supply chain management, and Jonathan Mildenhall, who was previously with

The new directors are Angel Mendez, who runs a private artificial-intelligence company focused on supply-chain management, and Jonathan Mildenhall, the former chief marketing officer of Airbnb.

Peloton shares are down over 4% in pre-open Tuesday.

By Senad Karaahmetovic | [email protected]