Peloton brings in former Apple executive Peter Stern as CEO to steer turnaround

(Reuters) -Peloton Interactive has appointed former Apple (NASDAQ:) executive Peter Stern as its CEO and president effective Jan. 1, the fitness-equipment maker said on Thursday, to steer its turnaround efforts after a post-pandemic slump in demand.

Peloton (NASDAQ:)’s shares jumped 12.5% before the bell.

Stern, 52, is currently president of Ford Motor (NYSE:)’s digital services business, responsible for a portfolio of subscription services. He has been in that role for a little over a year.

Before that, he spent more than six years as Apple’s vice president of services, managing Apple TV+ and Sports, iCloud, Apple News, Apple Books and the iPhone maker’s other services.

Stern has spent over 20 years “at the nexus of hardware, software, content and services” at Ford, Apple and Time Warner Cable, Peloton said in its statement.

The company has been run by interim co-CEOs since May, when Barry McCarthy, a former Spotify (NYSE:) and Netflix (NASDAQ:) executive, stepped down after just over two years as the top boss.

Chairperson Karen Boone will serve as the sole interim CEO until Stern arrives, while board director Chris Bruzzo will step down as interim co-CEO on Nov. 1.

Peloton brought in McCarthy in February 2022 as it struggled to maintain the breakneck growth it enjoyed in the wake of the COVID-19 pandemic.

Besides implementing cost cuts and striking retail partnerships, McCarthy also led a rebranding push to make Peloton a software-focused company, leaning on its exclusive content to drive subscriber growth.

The company, on Thursday, also reported a 2% fall in first-quarter revenue to $595.5 million due to lower demand for its fitness equipment.

However, it posted positive cash flow, compared to a cash burn last year, as cost cuts helped.