Peloton has slashed its full-year revenue projection after the company experienced a poor start to 2022.
Peloton announced earlier today that it had slashed its financial outlook for the full year following a poor start to the new year.
This latest development also comes after the company announced that CEO John Foley would resign from his role as Peloton embarks on a broader restructuring of the business.
For the current year, the company previously estimated around $4.4 billion to $4.8 billion in revenue. However, Peloton has now slashed those figures to within a range of $3.7 billion to $3.8 billion.
Furthermore, Peloton said it expects to end 2022 with around three million connected fitness subscribers, which is lower than the previous estimates of 3.35 million to 3.45 million. The shares of Peloton are down by more than 2% during Tuesday’s pre-market trading session.
The company announced the exit of its CEO Foley earlier today. Barry McCarthy, the former chief financial officer of Spotify and Netflix, is set to take over the position and will also serve as the president and join Peloton’s board.
Peloton is also set to cut hundreds of other corporate jobs and slash millions of dollars in annual costs. These measures would give the company a chance to win back investors’ confidence and reset its business for growth coming out of the pandemic.
This latest development comes after reports yesterday that Peloton is in takeover talks. So far, Amazon and NIKE are some of the reported suitors, with tech giant Apple, another company that is also reportedly interested in acquiring Peloton.
Despite the rumours, Peloton and its executives are yet to talk about any potential takeover of the company. Amazon, Apple and NIKE have also not commented about acquiring Peloton since the reports emerged.
