Business
PELOTON ANNOUNCES COST REDUCTION EFFORTS TO POSITION COMPANY TO SUSTAIN MEANINGFUL, POSITIVE FREE CASH FLOW
Company to Continue Investment in Hardware, Software and Content Innovation, Improvements to Member Support Experience, and Marketing Optimization to Scale
About this update from Peloton Interactive, Inc.
[{"type":"text","content":"Company to Continue Investment in Hardware, Software and Content Innovation, Improvements to Member Support Experience, and Marketing Optimization to Scale the Business\nExpects to Reduce Annual Run-Rate Expenses by More than $200 Million by End of Fiscal 2025\nQ3 Fiscal Year 2024 Earnings Call Today at 8:30 am ET\nNEW YORK, May 2, 2024 /PRNewswire/ -- Peloton Interactive, Inc. (NASDAQ: PTON) today 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 $200 million by the end of its 2025 fiscal year.\n\n \n \n \n \n \n \n\n \nSpecifically, Peloton expects to:\nReduce 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.Third Quarter Fiscal 2024 Conference Call and Webcast\nPeloton's financial results for third quarter 2024 will take place today, May 2, 2024 at 8:30 am (Eastern Time) before the US stock market opens. The company will host a conference call and live audio webcast. In advance of the earnings call, please visit the Peloton investor relations website – https://investor.onepeloton.com/financial-information/quarterly-results – to view the third quarter shareholder letter.\nTo access the call by phone, participants can visit this phone link for registration, to be provided with dial in details. To avoid delays, participants are encouraged to register a minimum of 15 minutes before the start of the call.\nA live webcast of the conference call will also be available on the company's investor relations website at https://investor.onepeloton.com/news-and-events/events. For those unable to participate in the conference call, a replay will be available on the inv...