The former star of the connected fitness industry and the stock market has asked McKinsey & Co. to review its cost structure with an eye toward cutting overheads by shutting down its new in-house apparel division, which is in litigation with Lululemon, and by eliminating some jobs, according to a CNBC report. Among other moves, Peloton Interactive is also reportedly considering the closure of 15 of its 123 showrooms.
The company froze hiring of any new employees in November, after more than doubling the total headcount to 6,743 by the end of its latest financial year on June 30, compared with 3,281 on June 30, 2020. At the same time, it slashed its guidance for sales and margins following a loss of $376 million for the first quarter ended Sept. 30. It also indicated at the time that it would adjust its operating expenses to its new sales forecasts
Peloton had lowered the price of its original Bike product in August to $1,495, making room for its high-end $2,495 Bike+. It has now announced that it will stop free deliveries and installations for the original Bike and its Tread treadmill, charging instead $250 and $350, respectively, for these lower-priced models.
