(Reuters) -Peloton Interactive forecast 2026 revenue above estimates and said it would cut 6% of its global workforce to boost cost savings under an ongoing turnaround effort, sending the exercise-bike maker's shares up nearly 23% premarket.

Peloton launched in 2012 as a premium fitness brand, offering pricey exercise bikes, treadmills, and rowing machines with built-in screens that stream live and on-demand workout classes. The company really hit its stride during the covid-19 pandemic, when gyms were closed and people were scrambling for ways to stay active at home.

The New York-based fitness technology company generated revenue of $607 million in the quarter ending in June. Though that declined 6%, it still beat estimates. Total subscriptions on Peloton hardware fell 6%, while the number of app-based subscriptions dropped 11%. Still, overall gross profit improved and operating expenses shrank by 20%.