Following Q1 2022 earnings below expectations yesterday, CNBC reports today that Peloton is freezing hiring across all departments effective immediately. Peloton made the announcement during an all-hands meeting on Friday, with the company explaining that is looking for “areas of savings” as revenue lags.
The report from CNBC explains that “areas of savings” identified by Peloton include hiring, limiting showroom development, and “optimizing” marketing spend.
Peloton’s management team had hinted to analysts during a conference call on Thursday that it would be making cost cuts in the near future to realign with its sluggish revenue and user growth.
“Some of these identified areas of savings include making significant adjustments to our hiring plans across the company, optimizing marketing spend and limiting showroom development…,” chief financial officer Jill Woodworth said on the call.
More details on the situation are unclear as of right now, including details on how long the hiring freeze will last. The freeze, however, is expected to be implemented “across all departments” and is “effective immediately.”
Yesterday, Peloton not only reported fiscal Q1 2022 earnings below expectations, but also cut expectations for the entire fiscal year. The company revealed that it expects to have between 3.35 million and 3.45 million connected fitness subscribers by the end of the fiscal year, down from its original outlook of 3.63 million. It expects fiscal year revenue to amount to between $4.4 billion and $4.8 billion, down from the original outlook of $5.4 billion.
PTON stock ended trading on Friday down a whopping 35% following the earnings miss and revised outlook.