by Peloton is taking bold steps to reset its direction after years of turbulence. The company announced that Peter Stern, co-founder of Apple Fitness+, will become its new CEO and President, effective January 1, 2025.
The move marks a significant leadership transition for the fitness technology brand as it seeks to regain its footing and refocus its business strategy. Stern’s appointment underscores Peloton’s renewed emphasis on services, digital subscriptions, and sustainable innovation — a shift away from its previous identity as primarily a hardware company.
A Veteran Leader with Deep Tech and Media Experience
Peter Stern brings a wealth of experience from some of the world’s most influential technology and media organizations.
Before joining Peloton, Stern served as President of Integrated Services at Ford Motor Company, overseeing key initiatives such as BlueCruise, the automaker’s semi-autonomous driving platform. His leadership at Ford emphasized software integration, user experience, and subscription-based models — all crucial areas that align closely with Peloton’s new vision.
Prior to Ford, Stern held senior roles at Apple, where he co-founded Apple Fitness+, the company’s subscription-based fitness service that integrates with Apple Watch and Apple devices. He also helped shape Apple’s services ecosystem, which now contributes a major share of the company’s revenue.
Earlier in his career, Stern was an executive at Time Warner Cable, where he played a major role in product development and customer strategy.
This diverse background — spanning technology, subscription services, and media — positions Stern as an ideal leader for Peloton’s next chapter.
Why Peter Stern Was Chosen
According to Jay Hoag, Chairman of Peloton’s Board of Directors, Stern was selected for his “deep understanding of the health and wellness industry,” as well as his “proven ability to drive sustainable growth through innovation.”
In the board’s view, Stern represents a balance of creative vision and operational discipline — traits Peloton urgently needs as it continues to navigate financial challenges and an evolving fitness landscape.
“Peter has the perfect combination of product insight, service-oriented strategy, and leadership experience,” Hoag said in a statement. “He understands how to scale tech-driven platforms in ways that deliver consistent value to both consumers and shareholders.”
Leadership Transition Details
Stern will formally assume his role on January 1, 2025.
Until then, Karen Boone, a member of Peloton’s board, will serve as interim CEO beginning November 1, 2024. Boone has shared the co-CEO position since May alongside Chris Bruzzo following the resignation of former CEO Barry McCarthy.
McCarthy’s departure, just two years after Peloton founder John Foley stepped down, reflected ongoing instability within the company’s leadership ranks.
Peloton’s Shift from Hardware to Services
Peloton rose to fame during the early days of the COVID-19 pandemic, when lockdowns fueled massive demand for its connected fitness bikes and treadmills. However, as gyms reopened and consumer behavior shifted, Peloton’s growth quickly lost momentum.
The company’s challenge is clear: transform itself from a hardware-driven business to a service-first fitness platform.
In recent quarters, Peloton’s subscription app has emerged as a bright spot. According to the company’s latest financial report, subscription revenue reached $426 million in Q3, accounting for a growing share of overall revenue. Demand is also increasing for Peloton’s new strength training app, signaling that consumers are interested in flexible, app-based fitness solutions — not just expensive equipment.
Stern’s background in building digital ecosystems, particularly at Apple, will be key to expanding Peloton’s recurring revenue streams through memberships, content, and connected services.
The Challenges Ahead
While the leadership change brings optimism, Stern faces significant challenges.
Peloton’s revenue in Q3 2024 totaled $586 million, which slightly beat analyst expectations. However, the company also reported a larger-than-expected loss of 90 cents per share, compared to a forecast of just 15 cents.
These results highlight a deeper issue: despite improving operational efficiency, Peloton is still struggling to turn its brand strength into consistent profitability.
The company has already implemented major cost-cutting measures, including a 15% workforce reduction earlier this year. At the time, Peloton executives stated there was “no other way” to align expenses with declining revenue.
Stern must now find a balance between cutting losses and reigniting growth — all while maintaining employee morale and investor confidence.
Rebuilding Trust and Brand Identity
Beyond the numbers, Peloton faces a more intangible challenge: rebuilding trust and redefining its identity in a post-pandemic market.
Once a cultural phenomenon, Peloton’s reputation has been tested by product recalls, safety concerns, and increased competition from affordable alternatives like Echelon and premium rivals like Apple Fitness+ — the very service Stern helped create.
Ironically, Stern’s familiarity with Apple’s fitness ecosystem could help Peloton better position itself as a complementary or alternative platform, rather than a direct rival. His insight into user engagement, data integration, and cross-device experiences could guide Peloton toward a more unified and accessible fitness ecosystem.
A New Chapter for Peloton
Stern’s arrival signals a strategic reset for Peloton.
The company’s future will likely focus less on selling stationary bikes and treadmills, and more on offering holistic fitness experiences that combine content, data, and community.
Under Stern’s leadership, Peloton is expected to:
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Expand its digital app ecosystem, integrating more training categories like yoga, mindfulness, and outdoor running.
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Enhance personalization through AI-driven workout recommendations and performance tracking.
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Build partnerships with third-party device makers or health companies.
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Optimize operations to reduce production costs while maintaining product quality.
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Reignite brand trust through transparency, improved safety standards, and better customer communication.
By leveraging these strategies, Stern could help Peloton transition into a profitable, service-led wellness company — one capable of thriving beyond the pandemic-driven boom.
Investor and Industry Reactions
Early investor sentiment toward Stern’s appointment has been cautiously optimistic. Analysts note that his track record at Apple and Ford shows strong alignment with Peloton’s current needs: a leader who understands both technology and subscription economics.
Market observers also point out that Stern’s focus on integrated services could mirror the success Apple achieved by bundling fitness, media, and cloud offerings under one ecosystem.
If Stern can replicate even a fraction of that success, Peloton could see renewed growth and investor confidence in 2025.
Conclusion: Peloton’s Moment of Reinvention
Peloton’s decision to appoint Peter Stern as CEO represents more than just a leadership change — it’s a statement of intent.
By choosing a leader with deep expertise in fitness technology, digital ecosystems, and subscription innovation, Peloton is betting on a service-first future.
Stern now faces the challenge of transforming Peloton from a struggling pandemic-era brand into a long-term leader in the digital wellness space.
If he succeeds, Peloton could redefine how people experience at-home fitness — not through hardware alone, but through a seamless blend of technology, community, and personalized health experiences.
