Peloton Co-Founder Tom Cortese Steps Down, Replaced by Silicon Valley Veteran Nick Caldwell
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, who helped found the connected fitness company alongside former CEO John Foley in 2012, will move into an advisory role beginning Nov. 1, the company said.
“After nearly 12 years of pouring myself into Peloton and serving our Members, I have decided it is time to move on and create space for new perspectives,” Cortese said in a news release.
“I’m eager for new growth for Peloton and for me personally, but I’m also excited to support and watch this next phase of Peloton’s evolution. I could not be more proud of what we have accomplished, together.”
Caldwell most recently served on the board of tech companies Bitly, HubSpot and True Search and previously did stints at Twitter, Google, Reddit and Microsoft, where he worked for nearly 16 years at the start of his career, according to his LinkedIn profile.
He’ll oversee global product development and will start the new role Nov. 1.
“I want to thank Tom for his tireless dedication since launching Peloton nearly 12 years ago as a Co-Founder of the business. We simply wouldn’t be here today without his contributions,” CEO Barry McCarthy said in a statement. “Nick brings impressive engineering, design, and product experience to the Peloton team. Nick joins us at an exciting time as we lean into growing our subscriber base online and on our connected fitness hardware.”
Churn at the Top
The news comes more than a year into McCarthy’s stint as Peloton’s CEO. Since he took over, he has made several key hires, including Leslie Berland as the company’s marketing chief and Dalana Brand as its chief people officer. With Cortese’s departure, just two executives from Peloton’s early days remain in its C-suite.
During an interview, Cortese recalled Peloton’s early days and what inspired him and Foley to start the business.
Cortese started as the company’s chief operating officer and took over as product chief in August 2021, according to his LinkedIn. 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
Back in the company’s early days, Peloton primarily focused on selling its connected fitness products as an alternative to the gym. However, in recent years, the company’s products have faced recalls and legal battles.
Now, subscription revenue is Peloton’s primary driver. Earlier this year, the company announced a brand overhaul that emphasized its subscription offerings. While hardware development has slowed, Peloton maintains a strong hardware development team.
