Peloton suffers new UK losses with company continuing to slash jobs

Peloton's UK division has reported another substantial loss while continuing to significantly reduce its workforce, it has been disclosed.

The London-based branch posted a pre-tax loss of £94.3m for the 12 months to 30 June, 2024, following a loss of £115.2m in the previous year, as reported by City AM.

This latest loss follows Peloton UK's £173.7m deficit in the year to June 2022. Recent accounts filed with Companies House also reveal that the company's headcount dropped from 441 to 301 during the financial year.

This reduction follows a cut in Peloton UK's workforce from 682 in the preceding 12 months. The results also indicate a slight increase in revenue from £93.8m to £94.5m over the year.

Peloton's revenue comprises connected fitness sales and subscriptions. In the financial year, subscriptions accounted for 62 per cent of the company's revenue at £58.2m – a five per cent increase.

Peloton stated it is persistently adding members and experiencing "experience low churn rates." Connected fitness revenue for the 12 months totalled £34.2m, a decrease of six per cent.

The company attributed this decline largely to lower sales of bikes and accessories. Despite the significant pre-tax loss, Peloton reported an increase in gross profit for the year from £6.8m to £9.9m, while its operating loss was reduced from £98.1m to £88.9m.

Peloton stated its gross profit "improved significantly" due to an overall decrease in payroll-related costs resulting from "due to various restructuring initiatives."

The company's reduction in operating loss was aided by a decrease in the cost of sales by three percent and a six percent drop in administrative expenses.

During the year, restructuring costs amounted to £5.4 million, a significant reduction from the previous £17.1 million.

These figures were released following the approval of a new restructuring plan by the board of Peloton's US parent company in April 2024. The strategy is designed to "position Peloton for sustained, positive free cash flow, while enabling the company to continue to invest in software, hardware and content innovation, improvements to its member support experience and optimisation of marketing efforts to scale the business."