Peloton Interactive announced it will cut 6% of its global workforce as part of a turnaround plan, while forecasting stronger-than-expected 2026 revenue of $2.4–$2.5 billion. The restructuring aims to save an additional $100 million by the end of the next fiscal year through layoffs, office relocations, and reduced indirect costs. Shares jumped over 11% after the news.

The fitness company, known for its high-end stationary bikes and treadmills, reported a surprise quarterly profit of 5 cents per share versus an expected 6-cent loss. Operating expenses fell 20%, and gross profit from connected fitness products nearly doubled year-over-year. However, Peloton expects a $65 million hit to 2026 free cash flow from U.S. tariffs, prompting upcoming price adjustments.

For Canadian workers and suppliers, Peloton’s cuts highlight the ripple effects of global cost-saving measures in consumer fitness tech. While Canada is a smaller market for Peloton, some corporate and logistics roles could be impacted, and tariff-driven price hikes may reduce domestic demand. The move reflects a broader post-pandemic correction in the home fitness industry, with companies seeking efficiency after a boom during COVID-19 lockdowns.

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Aishwarya Jain’s original article, “Peloton to cut more jobs, forecasts strong 2026 revenue; shares rise” was published in Yahoo Finance News on August 7, 2025. Read the Full Yahoo Finance News story.