The company, which has not turned a profit since December 2020, is also looking to refinance more than $1 billion in debt.
Peloton is cutting about 400 jobs worldwide as part of a restructuring effort and its CEO Barry McCarthy is stepping down after two years as the company continues to work on turning around its business.
Shares slid 12%, to $2.81.
Peloton has been working on a significant rebranding since last year, shifting its identity as a seller of luxury exercise bikes and equipment to health technology for all.
The New York company experienced incredible sales growth during the height of the coronavirus pandemic. Its share price multiplied by more than five times in 2020 amid lockdowns that made its pricey bikes and treadmills popular among customers who pay a monthly fee to participate in interactive workouts.
But sales began to slow in 2021 as vaccines allowed people to roam more freely from their homes, including visits to the gym.
The company lost $1.26 billion in the fiscal year ended in June and an additional $350 million in the six months ended in December.
