Peloton Plans to Cut Jobs, Production Levels as Sales Slow

Bloomberg2022-01-21

Company posts revenue of $1.14 billion, just below estimatesCEO disputes reports of production halt, but confirms layoffsPeloton Interactive Inc. vowed to slash expenses at the struggling fitness ...

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飙高音
2022-01-21
飙高音
Great ariticle, would you like to share it?
lcloud
2022-01-21
lcloud
Ok
Iinus
2022-01-21
Iinus
Insiders selling their holdings
PengsieX
2022-01-21
PengsieX
Back to gym for the sights and sounds!
- US_watchlist:
  ok

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The company ended the period with 2.77 million connected fitness subscribers, just below the 2.81 million prediction.In that report, Foley said Peloton was taking “significant corrective actions to improve our profitability outlook and optimize our costs across the company.” The effort “includes gross margin improvements, moving to a more variable cost structure, and identifying reductions in our operating expenses as we build a more focused Peloton moving forward.”Foley said he would share more information on the cost-cutting plan when Peloton gives its formal earnings report on Feb. 8. “This work is still underway,” he said.The early earnings release follows a report from CNBC Thursday that the company was temporarily halting manufacturing of bikes and Tread-branded treadmills. Production of Peloton’s main stationary bikes will be paused for two months, CNBC reported, citing internal documents. And the company will stop making its treadmill machine for six weeks, starting in February.In the memo to staff, Foley disputed the report, saying that “rumors that we are halting all production of bikes and Treads are false.”The CNBC story sent the shares down 24% to $24.22 in regular trading Thursday. Foley’s remarks after the close boosted the stock, with it gaining 9.2% as of 8 p.m. in New York.Foley said Thursday that the company’s churn rate was 0.79%, signaling that “members are sticking with us.”Peloton’s CEO said on the last earnings call that the company would be working to identify ways to cut costs. Peloton had spent millions of dollars on building up supply of its products to fulfill pandemic-fueled demand, only for interest to sputter as economies began to reopen.The company didn’t provide updated fiscal-year guidance on Thursday. Peloton had said the previous quarter that it expects to generate revenue of $4.4 billion to $4.8 billion during fiscal 2022, which ends in June. That range was a reduction from earlier company projections of $5.4 billion.When Peloton slashed its 2022 guidance in November, the shares suffered their biggest decline ever. 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