Peloton Reportedly Lays Off 11% Workforce Including Engineers In Cost-Cutting Efforts

• The company is slated to announce its second-quarter earnings next week before the U.S. stock market opens on Thursday. 
• The company had said in November that it expects Q2 revenue in the range of $665 million to $685 million and adjusted core profit in the range of $55 million to $75 million.
• The company recently launched AI-powered bikes and treadmills.

Peloton Interactive Inc. (PTON) has reportedly slashed 11% of its workforce in a bid to cut costs at the company.

Bloomberg reported on Friday, citing a person familiar with the matter, that CEO Peter Stern informed staff of the move. The workforce reduction mostly impacts engineers working on technology and enterprise-related efforts, the report said.

PTON shares closed down 2% in the regular trading session and edged up marginally after hours.

Upcoming Q2 Earnings

The company is slated to announce its second-quarter (Q2) earnings next week before the U.S. stock market opens on Thursday, Feb. 5. Analysts, on average, expect the exercise equipment maker to report quarterly revenue of $675.13 million, compared to the $673.90 million reported in the corresponding quarter of fiscal year 2025, and loss per share of $0.05.

The company had said in November that it expects Q2 revenue in the range of $665 million to $685 million and adjusted core profit in the range of $55 million to $75 million.

For fiscal year 2026, the company expects year-over-year decline in revenue to a range of $2.4 billion to $2.5 billion and an increased adjusted core profit of $425 million to $475 million.

The company recently launched AI-powered bikes and treadmills featuring Peloton IQ, which includes form feedback, movement tracking, and voice control, intended to enhance user experience. However, Bloomberg reported in November that it had seen sluggish sales till then.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around PTON stock stayed within the ‘bearish’ territory over the past 24 hours, while message volume remained at ‘normal’ levels.

A Stocktwits user wrote, “Peloton is signaling “survive first, grow later.”

PTON stock has dropped 31% over the past 12 months. 

Read More: First Solar Shares Rebound As Wall Street Dismisses Tesla Competition Concerns

Get updates to this developing story directly on Stocktwits.

Share

·

Add us on