Shares of fitness company Peloton climbed on Thursday after the company forecast higher revenue for the coming year and announced layoffs that would affect 6% of its staff.

The company made surprise earnings for the quarter thanks to an increase in sales and a focus on cutting costs.

But Peloton said in its earnings report that it expects declining hardware sales and fewer subscriptions to its fitness software products.

The company also announced a restructuring plan to save at least $100 million through the fiscal year of 2026 by "reducing the size of our global team, paring back indirect spend, and relocating some of our work." Peloton expects to realize about half of that savings by laying off 6% of the workforce.

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