(Reuters) - Exercise bike company Peloton Interactive (NASDAQ:PTON) 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.