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NEW YORK – Peloton co-founder John Foley is stepping down as chief executive of the exercise bike company, multiple news outlets are reporting.

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According to The Associated Press and The Wall Street Journal, Foley, who has been at the helm for a decade, will become Peloton’s executive chair. The new CEO will be former Spotify and Netflix CFO Barry McCarthy, who also will have a seat on the board, the news outlets reported.

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Meanwhile, the New York-based fitness company revealed plans to cut 2,800 jobs worldwide – including 20% of corporate positions – amid a decline in demand and plummeting shares, according to the AP. The cuts will not affect Peloton instructors, the news agency reported.

“These decisions, particularly those related to our impacted Peloton team members, were not taken lightly,” Foley said in a statement Tuesday. “We greatly value the contributions of our talented colleagues and are committed to supporting impacted team members in their transitions. We thank our global team members for their focus and dedication through this process.”

Peloton, which also hopes to reduce its planned capital expenditures by about $150 million this year, said its actions should result in at least $800 million in cost savings annually when fully implemented, the AP reported.

The Associated Press contributed to this report.