Peloton co-founder and Chief Product Officer Tom Cortese is leaving the company

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People walk past a Peloton store in Coral Gables, Florida, on Jan. 20, 2022.

Joe Raedle | Getty Images

Peloton co-founder and Chief Product Officer Tom Cortese is leaving the company and will be replaced by longtime Silicon Valley veteran Nick Caldwell, the company announced Tuesday. Cortese will take on an advisory role at the company beginning November 1, according to the company. He founded the connected fitness company in 2012 with former CEO John Foley. Cortese stated in a press release that after nearly 12 years devoted to Peloton, and to serving its Members, it was time to move forward and make room for new perspectives. I am so proud of all we’ve accomplished together. “

Caldwell served most recently on the boards of tech companies Bitly HubSpot True Search, and previously worked at Twitter, Google Reddit, and Microsoft where he spent nearly 16 years in the beginning of his career. He will oversee global product developments and start his new role on Nov. 1, according to his LinkedIn profile. “I would like to thank Tom for the tireless dedication he has shown since Peloton was founded nearly 12 years ago. Barry McCarthy, CEO of Peloton, said that without Tom’s contributions the company would not be where it is today. Nick brings to Peloton’s team impressive engineering, product design and experience. Nick comes to us at a very exciting time, as we work hard to grow our subscriber base on the internet and with our connected fitness hardware. “

Churn in the top

This news comes after McCarthy has been CEO of Peloton for more than a full year. McCarthy has made a number of hires since he became CEO, including Leslie Berland, the marketing director, and Dalana brand, chief people officer. Berland and Brand both worked at Twitter prior to joining Peloton.

With Cortese’s departure, only two executives from Peloton’s early days are left in the C-suite. Cortese, Peloton co-founder Tom. Source: Peloton

2013, so 10 years ago now, I was standing in the Short Hills Mall in New Jersey, my kids thinking that I was a mall retail guy, and we were selling people on the idea of being able to access energetic, remarkable fitness from the most convenient place on earth: their home,” Cortese told CNBC earlier this year.

During an interview with CNBC earlier this year, Cortese recalled Peloton’s early days and what inspired him and Foley to start the business.

Peloton co-founder Tom Cortese.

Source: Peloton

2013, so 10 years ago now, I was standing in the Short Hills Mall in New Jersey, my kids thinking that I was a mall retail guy, and we were selling people on the idea of being able to access energetic, remarkable fitness from the most convenient place on Earth: their home,” Cortese told CNBC.

“The reason we were doing that is because what we saw happening in the real world … brick and mortar, was that people were turning to boutique studio fitness as something that was starting to excite them, right? The Peloton Bike and everything that comes with it was created because we saw people turning to boutique studio fitness in the real world. Cortese was most recently involved in the development of Peloton’s app and the introduction of new product features on its connected fitness products. Most recently, he was involved in the development of Peloton’s app and the introduction of new product features on its connected fitness products.

Shift toward subscription[In]Back in the company’s early days, Peloton was a product-first retailer that made the bulk of its revenue selling its pricey connected fitness products, including its Bike, Bike+ and Tread, as an alternative to the gym. Peloton products have been recalled numerous times over the years due to manufacturing defects, including some that injured customers. Its Tread+ treadmill had to be recalled following the death of a child. Since then, the company has been involved in a number of legal and fine battles relating to its products and recalls. When Peloton reported its last earnings on Aug. 23, the executives stated that they believed the recent recall of the Bike seat posts led to an increase in membership churn, and cost the company much more than expected. Peloton is now primarily reliant on subscription revenue. While the company insists that hardware is still one of its primary focus areas, new product development appears to have slowed. Cortese, when asked earlier this summer if there were plans to introduce new equipment, hinted that more would be coming. Cortese said that the company has a strong hardware development team. “