Peloton reviews cost structure with McKinsey, may cut jobs: CNBC
(Reuters) - 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 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)