Peloton co-founder and Chief Product Officer Tom Cortese is stepping down from his role and will be replaced by Nick Caldwell, a veteran of Silicon Valley. Cortese, who helped start the fitness company in 2012, will assume an advisory position on November 1. In a statement, Cortese expressed his excitement for Peloton’s future and his pride in what they have accomplished together. Meanwhile, Caldwell, who has a strong background in engineering and product development, will oversee global product development and join the company on November 1 as well.
This leadership change at Peloton comes as CEO Barry McCarthy continues to make hires since taking over more than a year ago. Cortese’s departure means that only two executives from Peloton’s early days remain in the C-suite. In an interview, Cortese reflected on the company’s early days and the inspiration behind its mission to provide convenient and energetic fitness from home. He started as the chief operating officer before becoming the product chief last year. Additionally, Peloton has shifted its focus from being a product-first retailer to prioritizing subscription revenue, with a recent brand overhaul emphasizing the importance of its app alongside its hardware.
While Peloton has faced challenges, including numerous recalls and legal battles related to its products, subscription revenue has become its primary driver. The company has recognized the impact of recent recalls on membership churn and increased costs. Though hardware development appears to have slowed, Peloton maintains a strong team and has hinted at more to come in the future.