Peloton reviews cost structure with McKinsey, may cut jobs – CNBC

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1 min read
A Peloton logo is seen on an exercise bike after the ringing of the opening bell for the company's IPO at the Nasdaq Market site in New York City

– Exercise bike company Peloton Interactive Inc is working with consulting firm McKinsey & Co to review its cost structure and may cut some jobs, CNBC reported https://www.cnbc.com/2022/01/18/peloton-hires-mckinsey-to-review-cost-structure-as-equipment-sales-slow-.html on Tuesday.

Shares of the company, which is facing lower demand as people set aside their cycles and return to pre-pandemic habits, were down 5.5% in morning trade. They hit over an 18 month-low on a day broader markets trudged lower.

Peloton, which lost 76.4% in 2021, did not immediately respond to Reuters request for comment.

The job cuts were discussed in a recent call with members of the exercise bike maker’s management team, CNBC reported, citing a recording of the call.

Once a pandemic darling, Peloton slashed its full-year outlook by up to $1 billion in November, saying demand for its exercise bikes and treadmills was slowing faster than expected. Analysts have warned of a tough path ahead for the company as people begin venturing out of their homes.

(Reporting by Kannaki Deka in Bengaluru; Editing by Shinjini Ganguli)

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