Peloton Names New Supply Chain and People Chiefs to Rebound in 2022

Just weeks after welcoming a new CEO and letting go of 2,800 employees, Peloton has announced the addition of two new C-suite executives: Andrew Rendich and Shari Eaton.

Rendich is a new arrival to the fitness technology company, and joins as its Chief Supply Chain Officer on March 16. Eaton, who has been at Peloton since 2019, has been promoted from SVP and Global Head of People to Chief People Officer, effective immediately.

Rendich brings 30 years of supply chain, operations, customer service and technology experience and will oversee the company’s Supply Chain, Distribution, Member Support and Information Technology teams.

Before teaming up with the embattled fitness technology company, Redich was the COO at Grove Collaborative. He also has held senior leadership roles within Eat Just, Good Eggs, Walmart and Netflix. While at the streaming giant, Redich spent 12 years in leadership roles, including a stint as the streaming service’s Chief Service and Operations Officer.

"Andy deeply understands how to run and execute a subscription model business," Peloton’s recently appointed CEO Barry McCarthy said in a press release. "He has always put the customer first while delivering an excellent experience, a superpower that is central to Peloton's Members-first mentality."

Peloton’s decision to bring these new leaders into the C-suite provides McCarthy with two experienced executives to help him turn around the struggling company.

Rendich steps into Peloton amid a massive pivot. A few weeks ago, the smart treadmill and stationary bike maker announced a new CEO and large-scale layoffs. However, the changes went deeper than personnel changes. Peloton also unveiled plans to scrap its upcoming Ohio-based manufacturing and logistics campus in favor of third-party partners as it looks to cut costs.

Additionally, Peloton announced a new subscription-based model in which customers pay a single monthly fee for their equipment and classes. If a user cancels their monthly plan, Peloton will reclaim the bike with no charge. This rental approach is a divergence from its previous model, which required a user to buy a high-price bike or treadmill upfront or on a payment plan in addition to a class subscription.

By allowing users to essentially rent its equipment, Peloton could attract users who previously may have been unwilling to make the financial commitment to buy a full-priced bike that could one day become an expensive clothes rack. While the move lowers the barrier to entry into Peloton’s ecosystem, it also raises new logistical challenges such as picking up used equipment and sending it back for refurbishment. The execution of this pivot to a rental model will likely fall on Rendich’s shoulders.

While Rendich handles the remodeling of Peloton’s supply chain, Eaton will continue to oversee the challenging task of reshaping and reinvigorating the company’s workforce after the departure of nearly 3,000 of their colleagues, a figure that included about 20% of Peloton’s corporate positions.

In the company’s press release, McCarthy called Eaton an “invaluable and respected leader” and added that the Chief People Officer position will report to him directly “because attracting, retaining, and developing talent is foundational to our success."