Oct 31 (Reuters) - Peloton Interactive ( PTON ) has

appointed former Apple executive Peter Stern as its

CEO and president effective Jan. 1, the fitness-equipment maker

said on Thursday, to steer its turnaround efforts after a

post-pandemic slump in demand.

Peloton's shares jumped 12.5% before the bell.

Stern, 52, is currently president of Ford Motor's ( F )

digital services business, responsible for a portfolio of

subscription services. He has been in that role for a little

over a year.

Before that, he spent more than six years as Apple's ( AAPL ) vice

president of services, managing Apple TV+ and Sports, iCloud,

Apple News, Apple Books and the iPhone maker's other services.

Stern has spent over 20 years "at the nexus of hardware,

software, content and services" at Ford, Apple and Time Warner

Cable, Peloton said in its statement.

The company has been run by interim co-CEOs since May, when

Barry McCarthy, a former Spotify and Netflix ( NFLX )

executive, stepped down after just over two years as the top

boss.

Chairperson Karen Boone will serve as the sole interim CEO

until Stern arrives, while board director Chris Bruzzo will step

down as interim co-CEO on Nov. 1.

Peloton brought in McCarthy in February 2022 as it struggled

to maintain the breakneck growth it enjoyed in the wake of the

COVID-19 pandemic.

Besides implementing cost cuts and striking retail

partnerships, McCarthy also led a rebranding push to make

Peloton a software-focused company, leaning on its exclusive

content to drive subscriber growth.

The company, on Thursday, also reported a 2% fall in

first-quarter revenue to $595.5 million due to lower demand for

its fitness equipment.

However, it posted positive cash flow, compared to a cash

burn last year, as cost cuts helped.