Co-founder John Foley will step down as CEO and will become the executive chair.
The company named Barry McCarthy, a former CFO at Spotify and Netflix Inc, to take over starting Wednesday.
The executive shuffle comes after Foley fought a board-room brawl with activist investor Blackwells Capital as Peloton struggled to maintain the meteoric growth it saw in 2020 and 2021.
Shares have since tumbled nearly 80%.
Blackwells pushed for his removal and even urged the company to sell itself.
Last week, Reuters reported that Peloton has drawn interest from potential buyers including e-commerce giant Amazon.com.
Peloton said it would also cut roughly 2,800 jobs, affecting 20% of its corporate positions.
Shares of the company rose 10% in early trading on Tuesday.
