New CEO Aims to Revive Peloton’s Fitness Empire

Peter Stern, 54, stepped into the CEO role at Peloton early in 2025 after pitching himself to a headhunter. He came from a long career in subscription services, having worked for Time Warner, Apple and Ford’s software division. Stern sees the job as a dream opportunity, despite Peloton’s recent struggles. The company once thrived during the pandemic, when people stayed home and turned to Peloton’s equipment. Now its subscription numbers have plateaued and sales are falling, causing the market value to tumble from nearly $50 billion five years ago to about $2 billion. Last year, Peloton cut 11 percent of its staff across engineering and content teams. A lowered sales forecast in a recent earnings report sent the share price down again, while rising prices led to higher subscriber churn. The CFO also departed in a recent shake‑up.Stern’s strategy involves redefining what Peloton means to consumers. In the fall, the company introduced AI‑driven workout suggestions and upgraded its bike, treadmill, and rowing machine lines. It has also added more strength‑training and yoga classes as those formats gain popularity. Looking beyond home workouts, Peloton plans to produce branded equipment for gyms. “Honestly, I can’t think of a better strategy for this business, ” Stern told reporters at the Manhattan headquarters.