Peloton cuts marketing investment by 19% amid strategic shift and turnaround battle
Peloton is set to further reduce its marketing spend while steering away from heavy promotions, marking a strategic shift in response to ongoing financial challenges.
By Molly Innes
Peloton slashed its marketing budget by $26m (£19.8m), in the three months ending 30 June, a 19% year-on-year decrease. This comes after the struggling bike business launched a turnaround plan in May to cut $200m (£152m) in costs by the end of next June.
Peloton’s revenue was $643.6 (£490m) for the quarter, a modest uplift of 0.2% compared to last year. It’s the company’s first year-on-year growth since the second quarter of its 2022 fiscal year.
“We’re enthusiastic about our innovative road map. But we’ll be judicious about deploying marketing dollars until we demonstrate product-market fit and continue to be cautious about marketing spend, given the uncertain consumer backdrop and ongoing macro environment,” said Karen Boone, interim co-CEO on a call with investors yesterday (22 August). The cuts will continue for the next 12 months, the business said.
