Shares of fitness company Peloton climbed on Thursday after the company forecast higher revenue for the coming year and announced layoffs that would affect 6% of its staff.
The company made surprise earnings for the quarter thanks to an increase in sales and a focus on cutting costs.
But Peloton said in its earnings report that it expects declining hardware sales and fewer subscriptions to its fitness software products.
The company also announced a restructuring plan to save at least $100 million through the fiscal year of 2026 by "reducing the size of our global team, paring back indirect spend, and relocating some of our work." Peloton expects to realize about half of that savings by laying off 6% of the workforce.
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That reduction follows a larger layoff in 2024 in which Peloton cut roughly 15% of its workforce, or about 400 positions. In 2022, the company cut about 1,300 staff.
The New York-based company saw sales of its stationary bikes and treadmills skyrocket at the height of the COVID-19 pandemic, when lockdowns left many American's stuck at home looking for ways to stay fit. However, sales began to plummet in 2021 as gyms reopened and people were able to return to their pre-pandemic lives.
