The news for Peloton Interactive, Inc. continues to worsen this week as CNBC(LINK) reveals the company (known for slapping an iPad on a stationary bike and charging thousands of dollars) is working with management consulting group McKinsey & Co. to analyze cost structure and potentially slash jobs.
CNBC obtained a recording of a recent call of Peloton’s management team discussing job cuts. There was an emphasis on reducing staff in its apparel division due to underperforming sales.
One Peloton executive was heard saying as many as 12% of all brick-and-mortar retail stores (about 12 out of 123 showrooms worldwide) are “on the cut line.”
There were also dozens of Slack messages CNBC reviewed of employees discussing upcoming job cuts and the company’s cratering stock price.
“Morale is at an all-time low,” one employee told CNBC. “The company is spinning out so fast.”
Peloton shares are down more than 3% to $30.28 in Tuesday morning trading. The stock has crashed more than 80% in the last 12 months, nearly back to IPO price, Zero Hedge pointed out