As a part of a significant restructuring at Peloton, Barry McCarthy has changed John Foley as the brand new CEO, however what path did he take to get right here?
After a turbulent variety of months for Peloton (NASDAQ: PTON), its inventory value has plummeted because it has confronted a myriad of issues. Gross sales boomed throughout the pandemic, and Peloton’s spending soared, however since then, demand has dwindled, resulting in the corporate halting manufacturing and introducing cost-cutting measures. It has additionally skilled a public relations (PR) nightmare, from recalling its treadmill attributable to security issues to poor product placement, which has compounded its issues.
With co-founder John Foley stepping other than the CEO function, Barry McCarthy has now been tasked with successfully turning the corporate’s fortunes round. Let’s check out his life and profession up to now.
Barry McCarthy is 68 years previous, and little is thought about his private life. McCarthy obtained a Bachelor’s diploma in Historical past at Williams Faculty earlier than getting an MBA in finance from the Wharton Enterprise Faculty. He began his profession at a consulting agency in 1980 and labored in a number of firms earlier than serving because the CFO for the primary time at Music Selection in 1993, previous to touchdown a job at Netflix.
Netflix CEO Reed Hastings recruited McCarthy as CFO in 1999 after assembly on a snowboarding journey and was some of the influential individuals within the firm throughout his time there. McCarthy practically left the corporate in 2004 however is quoted as saying, “you don’t stroll out on buddies in the midst of a knife struggle”. This will give Peloton buyers an perception into his values and dedication to develop, notably throughout powerful occasions. He remained at Netflix till his departure in 2010 and led the corporate via extraordinary development because it remodeled from transport DVDs to a large streaming platform.
He then held a number of roles, together with a uncommon failure in a six-month stint because the CEO of Clinkle, earlier than becoming a member of Spotify in 2014 as a Board Member after which as CFO a yr later. McCarthy helped to drive engagement and its entry into the podcasting area with a few acquisitions which has confirmed to date to be vastly profitable. McCarthy was additionally a key determine behind Spotify’s determination to go public via a direct listing which was daring however profitable and paved the way in which for different firms reminiscent of Airbnb to do the identical.
McCarthy has additionally held roles on the Board of Administrators of well-known firms reminiscent of Chegg, Eventbrite, Pandora, and extra. Presently, he stays on Instacart’s board and as an advisor for enterprise agency Expertise Crossover, a job which he has held since 2011.
The precursor to a possible sale?:
As a consequence of his expertise in finance, the appointment of McCarthy has led to rumours of a possible sale and firms like Apple being touted as potential acquirers. Moreover, regardless of activist buyers calling for the sale, McCarthy has strongly denied such rumors. As a substitute he intends to concentrate on development and with huge expertise working for consumer-technology firms which have subscription enterprise fashions, McCarthy seems to be well-suited to his new function. Founder Foley has additionally lended his assist stating that “Barry is extra completely suited than anyone I may’ve imagined”.