Peloton cuts 800 jobs, hike prices
Peloton Interactive Inc. will delay the publication of its annual report, saying it needs more time to sort out accounting tied to the fitness company’s restructuring effort.
As part of a turnaround plan, Peloton recently shifted away from in-house deliveries and warehouses, opting to rely on partners instead. Accounting for those changes will prevent the company from filing its 10-K report in a timely manner, Peloton said in a filing Monday.
Peloton said it needs more time to finish disclosures related to the fourth quarter, “including management’s assessment of the effectiveness of internal controls over financial reporting as it relates to its accounts and disclosures related to these strategic business developments.”
The company already delivered its fourth-quarter financial report, including a forecast for the current quarter. That’s typically followed soon by the more in-depth 10-K filing. But management has determined that it won’t complete the necessary audit procedures with its accounting firm, Ernst & Young LLP, in time.
The warehouse changes are part of an ambitious comeback effort by Peloton, which had thrived in the early days of the pandemic before sliding into a deep slump. The company has also announced recent plans to outsource manufacturing to third-party factories, cut its customer service operations in half and lay off hundreds of workers.
Last week, Peloton gave a bleak forecast for the current quarter, with losses piling up and sales falling more steeply than Wall Street expected.