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Peloton CEO to Step Down, 15 percent of Workforce Cut & Q3 Miss

Peloton (NASDAQ:PTON) initially saw a rise in its stock price on Thursday after announcing cost-cutting measures and changes in leadership, but later experienced a decline of more than 10% intra-day today. The fitness company reported a third-quarter adjusted loss per share of $0.45, missing analyst expectations by $0.09. Revenue was almost in line with estimates, reaching $717.7 million compared to the expected $718 million.
The revenue marked a decline from the $936.9 million reported in the same quarter last year, highlighting a challenging period for Peloton. The company announced aggressive cost-cutting measures, including a global workforce reduction of around 15% (approximately 400 employees) and the announcement of CEO Barry McCarthy’s resignation.
Peloton’s restructuring efforts aim to align costs with its current business size and achieve over $200 million in annual expense reductions by the end of the 2025 fiscal year, with a focus on maintaining sustained positive free cash flow. The company reported its first positive free cash flow in more than three years, marking a significant milestone in its turnaround efforts.
For the fiscal year 2024, Peloton revised its revenue guidance to a range of $2.68 to $2.7 billion, which is slightly below the analyst consensus of $2.71 billion. This adjustment reflects current demand trends and anticipates a seasonal decline in demand in the fourth quarter.

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