Peloton Interactive Inc PTON is trading lower Tuesday on reports the company is working with management consulting group McKinsey & Co to review cost restructure, which could include store closures and layoffs.
The possible job cuts were discussed in a recent call with members of Peloton’s management team, according to a CNBC report citing a recording of the call.
The report suggests that Peloton's apparel division, which has seen particularly weak sales, is one business segment that could be targeted.
"Morale is at an all-time low," said a Peloton employee who requested anonymity to be able to speak freely with CNBC. "The company is spinning out so fast."
Peloton operates an interactive fitness platform in two reportable segments: connected fitness products and subscriptions.
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PTON Price Action: Peloton has traded as high as $171.09 over a 52-week period. It's making new 52-week lows during Tuesday's trading session.
The stock was down 5.08% at $29.74 at time of publication.
Photo: courtesy of Peloton.
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