Peloton Interactive Inc shares fell to a record low after CEO Barry McCarthy announced plans to step down and the company announced a major restructuring that will reduce its global workforce by 15%. McCarthy took over as CEO in early 2022 and implemented layoffs, management shake-ups, and outsourcing. The company struggled with growing 'at scale' and warned in February that revenue may not start increasing again until the fourth quarter. Peloton announced a new restructuring program to reduce annual expenses by over $200 million and will continue to pare its retail showroom footprint and eliminate about 400 jobs. The company also narrowed its revenue guidance for the fiscal year and anticipates lower connected fitness subscribers. Peloton is revamping its approach to international markets to be more targeted and efficient.
Chegg, Inc. (CHGG) shares jumped over 9% in extended trading on Monday after the learning platform said it is reducing its global headcount by 23% or about 441 employees as part of a restructuring plan. The company expects to realize non-GAAP expense savings of $40 million to $50 million in 2025 from employee departures, the closure of two offices outside the U.S., as well as other cost rationalizations. Chegg expects to incur a $10 million to $14 million charge related to the restructuring, with roughly half in the second quarter, and substantially the charges will be incurred by the fourth quarter of 2024. In April, Chegg announced that it had fewer subscriptions in the latest quarter and would realize a further 5% drop in subscription revenue in Q2. The company also reiterated its previous second-quarter guidance, expecting total revenues to be within the range of $159M to $161M.