Peloton Instructor Exits Add to Fitness Company’s Woes
Star instructors have created and maintained the magic of Peloton. What happens next for the connected fitness brand amid financial struggles?
As June winds down, three popular Peloton instructors are set to exit the at-home fitness giant following a round of contract negotiations that has left some Peloton devotees disheartened.
Kristin McGee, Kendall Toole and Ross Rayburn each took to social media to announce their upcoming departures.
It’s another blow to the connected fitness company that’s experienced an identity crisis in recent years, struggling to secure its place in a fitness landscape that once served as fertile ground during the pandemic’s at-home workout boom. PTON now sits under $4 per share, a far cry from its all-time high in 2021 at $167.42.
“As with all businesses who work with professional athletes, Instructor contracts are a normal and ongoing part of the Peloton process,” Peloton said in a widely reported statement. “During our most recent round of contract discussions, three of our beloved Instructors have chosen to leave to explore new opportunities. Each has their own special magic that has helped build the incredible Peloton community we have today; we are truly grateful and wish them all the best.”
While the connected fitness brand said its doors would remain open to the departing instructors, it indicated that the changes could encourage new Peloton instructors to emerge.
While Peloton has repositioned itself over the years from a hardware-centric company to a content-focused brand, the connected fitness company has always relied on its famed instructors.
A cursory look at any social media forum populated by avid Pelotoners discussing the impending exit of McGee, Toole and Rayburn illustrates just how essential Peloton’s instructors are for those who have remained with the fitness brand through thick and thin.
Under Toole’s Instagram post confirming the news, one fan wrote that the beloved instructor had helped her get through the sudden loss of her father. “Never thought I could cry while exercising and feeling so much gratitude in a time of grief,” the poster wrote.
Not everyone is leaving Peloton, however. Instructor Cody Rigsby announced on Instagram earlier this month that he signed a new contract. “You guys are stuck with me,” Rigsby joked in the video clip confirming the news.
Last month, Peloton completed a $1.35 billion “holistic refinancing” to reduce debt and extend maturities. The company is currently led by interim co-CEOs Karen Boone and Chris Bruzzo, who took over following former CEO Barry McCarthy’s exit.
Peloton is expected to release its next earnings report for Q4 towards the end of August.
