This week's PR Roundup examines Peloton's conflicting earnings and layoffs messaging, a study showing that LGBTQ+ visibility in advertising and messaging is important to consumer loyalty, and well, tariff price increases are here—so how should that be communicated?
Peloton Announces Profits … but also Layoffs
What happened: Peloton surprised investors this week by revealing a Q4 early earnings report of $607 million in revenue versus the $580 million expected. According to CNBC, Peloton fueled its financial turnaround by reducing expenses—including a 20% drop in operating expenses and a 33% drop in general and administrative costs—while increasing gross margins on connected fitness products by 17.3%.
In his letter to shareholders, CEO Peter Stern also confirmed that the company’s costs “remain too high” and unveiled a new cost‑saving initiative, which includes a 6% workforce reduction.
“Our operating expenses remain too high, which hinders our ability to invest in our future,” Stern wrote. “We are launching a cost restructuring plan intended to achieve at least $100 million of run-rate savings by the end of FY26 by reducing the size of our global team, paring back indirect spend, and relocating some of our work. This is not a decision we came to lightly, as it impacts many talented team members, but we believe it is necessary for the long-term health of our business.”
Peloton’s last set of layoffs, in which 15% of employees lost their jobs, occurred about one year ago.
Communication takeaways: To some of the public, announcing a profit and layoffs together may seem confusing. Is this a positive or negative PR strategy? The gut reaction for many might be "horrible!" But here's another thought: maybe onlookers and investors will feel settled by the transparency, rather than unsettled by a company distributing a profit message one day and a layoffs message several days later. The public will decide.
Dylan Jones, Managing Partner at Boldsquare, says this is the reality that corporate communicators live in every day—finding ways to tell multiple stories at once.
“It’s difficult to deliver two contradictory messages at once, but sometimes you really don’t have a choice,” Jones says. “In Peloton’s case, the company had good results, but it’s still in a turnaround period and needed to show continued progress to Wall Street rather than these being one-off performance exceptions. That means demonstrating fiscal discipline, and layoffs are a key part of that story. Had they led with the job cuts a week or two ago, it would have triggered investor speculation without the benefit of the earnings context to explain what was happening.”
Jones notes that while not an ideal situation, it’s one where communicators really earn their keep.
“You have to be able to tell investors why they should have a long-term expectation of success, while at the same time ensuring that employee effort is recognized, and that you show empathy and understanding both for those leaving and for those losing colleagues or taking on additional work,” he says. “It’s not easy for teams to hear that you have beaten investor expectations but you’re also going to have to make cuts. Communicators have to be there to thread that needle.”
New Data: DEI Pullbacks Cost Brands Trust and Revenue as LGBTQ+ Visibility Drops
What happened: New research released this week from ad measurement provider DISQO and national LGBTQ+ advertising community Do the WeRQ reveals 41% of consumers lose trust when brands retreat from diversity, equity and inclusion (DEI) commitments, and 39% have already changed purchasing behavior in response to rollbacks.
The report, "2025 LGBTQ+ Advertising: Marketing in the Quiet Age of DEI," explores the commercial consequences of corporate pullbacks from DEI initiatives—focusing on how those shifts impact LGBTQ+ inclusion in messaging and marketing. The fifth annual study reveals that while many brands are retreating from LGBTQ+ engagement amid political pressures, consumers continue to demand representation and are responding to rollbacks with their wallets.
The research shows a real disconnect: While LGBTQ+ visibility in advertising dropped 15% since 2023, 68% of consumers still want the same or more representation.
Other key insights include:
- DEI misunderstanding creates vulnerability: Only 46% of consumers can correctly define the DEI acronym, with 28% unable to identify any component terms. This knowledge gap leaves vital programs vulnerable to mischaracterization and political weaponization.
- Pullbacks carry real commercial risk: 24% say they would quietly reduce or stop buying from brands that retreat from DEI—creating "silent attrition." Only 5% would reward a brand for rolling back DEI initiatives.
- Consistency drives brand love and loyalty: Brands that maintain LGBTQ+ inclusion despite backlash see support increase from 43% of all consumers, with even higher numbers among Gen Z (57%), LGBTQ+ people (80%) and high-income earners (50%).
- Beyond Pride: Year-round inclusion as a standard: The study indicates that effective LGBTQ+ inclusion requires more than seasonal campaigns. With LGBTQ+ visibility declining across advertising channels, brands that consistently show up—especially outside Pride month—can build stronger associations with values like acceptance, belonging and innovation.
Communication takeaways: It’s up to brand communicators to acknowledge consumers' knowledge gaps while building responsible campaigns significant to their audiences.
“Because of what we now know about DEI illiteracy and consumers' expectations on representation, brand leaders need to maintain DEI commitments while evolving the language representing those initiatives,” says Kaitlyn Barclay, Data Director of Do the WeRQ. “If successful, they can improve comprehension of those policies' impact and continue to amass brand loyalty in the hearts—and wallets—of consumers.”
Do the WeRQ offers these recommendations for communicators navigating the current DEI messaging environment:
- Build reputation with clarity, not acronyms: Use values-driven and impact-focused language about inclusion commitments rather than misunderstood buzzwords.
- Back values with measurable action: Establish tangible commitments including financial investment and transparent reporting.
- Strengthen trusted communication channels: Centralize DEI information on a website, offering strong SEO and GEO to control the narrative.
Customers Want Brands to Have Tariff Transparency
What happened: It appears that this week (at least according to the media) the tariff crunch has arrived. Open any business news site or your inbox and headlines and subject lines include “Tariffs Kick In” (Bloomberg, Semafor), “Can the Courts Stop Trump’s Tariffs?” (The New Yorker), “The Morning: New Tariffs” (New York Times), etc.
So, if you are a brand affected by tariffs and plan on increasing your prices, what exactly is the best way to do that? Remember the impact of the egg shortage on the restaurant industry? Some places handled it well (Waffle House), while some needed a little help.
A new survey released by Morning Consult examines consumers’ responses to brand communications about tariff-driven price hikes. The key notes?
- A majority of consumers (57%) have seen, read or heard about brands urging shoppers to buy now and get ahead of potential price increases due to tariffs. Consumers appreciate the transparency, even with daily changes.
- Shoppers see brands that communicate price changes due to tariffs as smart, practical and trustworthy. Not communicating price increases risks being seen as unpatriotic, cowardly and unethical.
- Message testing shows that consumers appreciate upfront communications from brands about the potential impact of tariffs more than a line item on their receipt. Brands must avoid fee surprises for consumers.
Communication takeaways: While it’s not an easy task to deliver bad news to customers, it’s going to make communicators essential during this volatile economic time.
KARV Founder and President, Andrew Frank, says companies need to place an urgent priority on transparency and direct communication to customers about the impact tariffs will have on pricing. He offers suggestions on how to go about doing so.
“This could include a message from the CEO posted on the website, social media handles, or in-app notices as opposed to traditional press releases or media statements,” Frank says.
He also notes the importance of preparing detailed media response statements and social media posts in case of blowback.
“If a company has a substantial customer base, consider a blog post on the company website that clearly and concisely explains its approach, rationale and actions—and be ready for inquiries or comments from media or social followers.”
Nicole Schuman is Managing Editor at PRNEWS.