Peloton Raising Fees, Planning Job Cuts, & Store Closures, as Demand Weakens

Peloton has hired management consulting group McKinsey & Co. to review its cost structure and potentially eliminate some jobs, CNBC reported.

The job cuts were discussed in a recent call with members of Peloton’s management team. The apparel division, which has seen particularly weak sales, is one area that could be targeted. A Peloton executive on the call said that 15 stores are “on the cut line.” Peloton operated 123 showrooms as of June 30, in the U.S., Canada, the U.K. and Germany.

Peloton’s market cap has fallen to $10.2 billion, as its shares tumbled 76% last year, after rising more than 440% in 2020 when it’s stock hit an all time high of 162 per share. The decline has accelerated this year, with Peloton shares hitting a 52-week low of $29.25 on Tuesday.

Peloton was killing it when Covid initially hit in 2020 as the global lockdown forced people to find work out alternatives at home, but the party hasn’t lasted as the lock downs have subsided and many are going back to the gym.

Peloton also announced it will be increasing fees on new bikes by hundreds of dollars for new customers citing inflation.