Peloton stock continued to fall on Tuesday, with nearly all technology stocks selling off as bond yields soared. In an emergency, the bicycle manufacturer is now trying to turn things around with a consultant.
Peloton works with management consulting group McKinsey & Co. To revise the cost structure and possibly cut some jobs, such as CNBC testing.
Possible job cuts were discussed in a recent phone call with members of the Peloton management team, according to a CNBC filing. The apparel division, which is seeing particularly weak sales, is one area to target.
Peloton is also considering closing brick-and-mortar retail stores. 15 stores on the brink. Peloton operated 123 showrooms in the US, Canada, UK and Germany as of June 30.
CFO Jill Woodworth already said in early November that the company wanted to cut costs. This is because the pace of revenue growth and new subscriptions has slowed significantly since the early days of the Covid pandemic.
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