On announced on Wednesday that CEO Martin Hoffmann will step down from the brand in May in what the company said will be a “planned hiatus” as he will “pursue philanthropic interests.”
The Swiss sportswear maker said Hoffmann will depart on May 1, with co-founders David Allemann and Caspar Coppetti set to replace him as co-CEOs while staying on as as executive co-chairmen of the company’s board.
Scott Maguire will be promoted to president and chief operating officer.
Hoffmann had a 13-year stint at the brand and his departure comes just a year after former co-CEO Marc Maurer exited the company. But his imprint on the company helped pushed On into an emerging contender in the performance footwear and apparel space. Last year, On saw significant revenue increases across its product offering at $3.8 billion in sales, which beat Wall Street estimates.
“It has been an absolute privilege to shape On and this amazing team alongside the Founders for over a decade,” Hoffmann said. “The timing to move on feels right. Over the past 12 months we have been highly engaged in defining the next growth horizon and leadership structure for On. This next chapter will be driven by the talented and experienced leaders who I’ve worked closely with over many years.”
On said that Hoffman will remain with the brand as an advisor through March 2027.
Following the news of Hoffmann’s departure, shares of On were down more than 11 percent to a closing price of $35.16 on Wednesday.
“It is difficult to put into words how impactful Martin has been,” Coppetti said. “From our early days through a landmark IPO, his commitment to our culture and financial discipline has been instrumental. It has been a privilege to work alongside him and we are deeply grateful for his partnership, his outstanding contribution and the legacy he has built.”
With Allemann and Coppetti shifting back to leadership roles and its third cofounder Olivier Bernhard continuing his focus on “product initiatives and athlete engagement,” On will look to ride some of the last year’s sales momentum into despite what is seen as a sudden change in its highest ranks.
One of the key priorities will be boosting its direct-to-consumer channel in the Americas market, which rose 13 percent in 2025 but was marked with slower progress compared to Asia-Pacific, which soared 71 percent.
Meanwhile, Europe, the Middle East and Africa region rose 24 percent as the brand upped its retail presence to 70 stores with 18 new locations opening in 2025.
The company is also betting heavily on its LightSpray shoe technology after announcing in February that it opened a new South Korean factory to increase its production of uppers. The facility was utilize 32 robots that will raise output 30-fold and easily outpace its existing Zurich factory that opened last year with just four robots.
