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Peloton reviews cost structure with McKinsey, may cut jobs

by Mike Robinson

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© Reuters. FILE PHOTO : After the ringing of a bell to announce the company’s IPO on the Nasdaq Market website in New York City. New York City, U.S.A, September 26, 2019, a Peloton logo was seen on an exercising bike. REUTERS/Shannon Stapleton

(Reuters) – Exercise bike company Peloton Interactive (NASDAQ:) 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.

In morning trade, shares fell by 5.5% for the company. They are facing less demand because people have stopped focusing on their cycles and returned to pre-pandemic routines. The shares fell more than 18 months on the same day that broader markets tumbled lower.

Peloton lost 76.4% by 2021. Reuters did not respond immediately to a request.

CNBC reports that the job reductions were discussed during a call with the management team of exercise bike manufacturer, and that the recording was used for reporting.

Peloton was once the darling of pandemics. In November, they cut their full-year outlook up to $1Billion. They said that demand for its treadmills and exercise bikes is slowing down faster than predicted. Analysts warn of the difficult path ahead for Peloton as more people leave their houses.

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