According to a CNBC report, the company plans to reduce run-rate expenses by another $100 million in fiscal year 2026, on top of the $200 million it cut in fiscal 2025, half of which will come from trimming the workforce.
Peloton Interactive (PTON) has reportedly announced another round of layoffs impacting 6% of its workforce.
According to a CNBC report, in fiscal year 2026, the company plans to reduce run-rate expenses, half of which will come from trimming the workforce.
Peloton CEO Peter Stern, in a shareholders’ letter on Thursday, said its operating expenses remain too high, which hinders the ability to invest in the company’s future. “Today, we are launching a cost restructuring plan intended to achieve at least $100 million of run-rate savings by the end of FY26 by reducing the size of our global team, paring back indirect spend, and relocating some of our work,” Stern added.
Shares of the fitness company soared 17% before the bell. Retail sentiment on Peloton remained unchanged in the ‘bullish’ territory, with chatter at ‘high’ levels, according to Stocktwits data.
Last year, Peloton named Stern as its new CEO to turn the company around. He had taken the job effective January 1. Stern was previously the president of Ford’s integrated services and before that held leadership roles at Apple and Time Warner Cable.
Peloton announced in May last year that its CEO, Barry McCarthy, was stepping down. It had also outlined on the same day a plan to lay off 15% of its staff to bring its expenditure in line with its revenue.
Stern added on Thursday that the company will expand from one microstore to 10, grow its third-party physical retail presence, and scale its trustworthy secondary marketplace for Peloton equipment, “Peloton Repowered,” from three cities to nationwide.
Peloton expects fiscal 2026 total revenue between $2.4 billion and $2.5 billion, compared with analysts’ estimates of $2.42 billion, according to data compiled by Fiscal AI.
The company’s fourth-quarter revenue came in at $606.9 million, beating Wall Street’s expectations of $579.91 million. It posted earnings per share (EPS) of $0.05, compared with an expected loss of $0.03.
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