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Peloton’s Last Remaining Co-Founder Is Leaving

Cortese, who was a key lieutenant to Peloton’s current chief executive officer and his predecessor, will remain an adviser after stepping down Nov. 1. He said in a statement that “it is time to move on and create space for new perspectives.”

In hiring someone with experience in software and cloud-based services, Peloton is underscoring its strategic shift toward online subscriptions — rather than just sales of fitness equipment.

After thriving during early pandemic lockdowns, Peloton has struggled to bounce back from a deep slump. In August, the company’s quarterly revenue outlook came in well below expectations. In addition to suffering a slowdown in equipment sales, Peloton has struggled with product recalls.

The company said last month that recalls tied to its high-end treadmill are costing more than expected and that it doesn’t expect to be cash-flow positive in the near term. Its stock has fallen more than 41% this year, adding to steep declines in 2021 and 2022.

Still, Peloton has expanded its product offerings. That’s included bringing its rowing machine to Canada and striking a hardware distribution deal with the University of Michigan. The company has also sought to generate additional revenue by getting its equipment into local gyms and hotels.

McCarthy, who took over for co-founder John Foley in early 2022, revamped the company’s operations and refocused on content and services. A veteran of Netflix Inc. and Spotify Technology SA, McCarthy also reshuffled management, bringing in executives from what was once known as Twitter as well as Uber Technologies Inc.

EK: When you hit the declining stage, what you need is product development and maybe a new person who brings new perspectives.

UK’s Top 1% Would Gain Most From Inheritance Tax Cut, IFS Says

Sunak’s government is reported to be considering cutting or abolishing inheritance tax to help close the gap with the opposition Labour Party in opinion polls.

The levy is deemed the most unfair by voters in polling, with an increasing number of Britons set to be caught up in the tax over the next decade due to the surge in wealth among older generations.

Reducing or scrapping IHT could help the Tories in wealthier “blue wall” seats in the south of England being targeted by Labour and the Liberal Democrats. Ending the tax would deliver around £3.3 billion to wealthiest estates, the IFS says.

However, ditching it could open the government to accusations of cutting taxes for the rich and raise questions about how to fill a multi billion-pound hole in the budget.

EK: Winning votes by creating a big hole in the budget that brings disadvantages in the long run.