Peloton announces cost reduction efforts, 15% global headcount reduction

Peloton Interactive announced comprehensive restructuring efforts to align the company’s cost structure with the current size of its business. This restructuring will position Peloton for sustained, positive free cash flow, while enabling the company to continue to invest in software, hardware and content innovation, improvements to its member support experience, and optimizations to marketing efforts to scale the business. Upon full implementation, the company expects the plan to result in reduced annual run-rate expenses by more than $200M by the end of its 2025 fiscal year. Specifically, Peloton expects to: Reduce global headcount by approximately 15%, which impacts roughly 400 Peloton team members. Continue reducing its retail showroom footprint. Reimagine the company’s international go-to-market approach to be more targeted and efficient, leveraging global strategies and capabilities – with localized execution – to allow the business to optimize and consolidate resources.