Peloton Interactive Inc. has announced plans to lay off 6% of its global workforce as part of a broader cost-cutting and turnaround strategy. The move, aimed at improving financial performance, helped propel the company’s shares up nearly 23% in premarket trading on Thursday.
The fitness equipment maker also surprised investors by posting a quarterly profit of 5 cents per share, beating Wall Street expectations of a 6-cent loss. Revenue for the fourth quarter reached $606.9 million, surpassing the forecasted $579.8 million, News.Az reports, citing Reuters.
Peloton said the job cuts, along with reductions in indirect costs and office relocations, are expected to generate an additional $100 million in savings by the end of the next fiscal year.
CEO Peter Stern, who joined Peloton from Ford Motor Co. in January, has led efforts to revitalize the company after declining demand for its premium exercise bikes and treadmills post-COVID.
The company forecast 2026 revenue in the range of $2.4 billion to $2.5 billion, exceeding analysts’ average estimate of $2.41 billion. Operating expenses were down 20% in the latest quarter, while general and administrative costs fell by 33% year-over-year.
Gross profit from connected fitness products surged 96% to $34.4 million, with the gross margin rising to 17.3%, a 900 basis point increase.
However, Peloton also warned that tariffs could negatively impact its 2026 free cash flow by around $65 million. The company plans to adjust pricing to help offset these additional costs.
