Peloton continues to struggle following a tumultuous year and revelations of potential layoffs, halted production, and a stock sale by insiders.
The company reported a net loss of $372 million in fiscal Q1 2022, a steep increase from the $49.8 million loss in the same period a year prior. Prior to the decline, Peloton executives and insiders sold roughly $500 million worth of stock when share prices were in better shape in the fall of 2020 through much of 2021.
The at-home fitness brand’s market cap has fallen by at least 80% in the past year. Shares of the company closed at $24.22 on Thursday.
The company planned to temporarily pause production of its bike products from February to March and won’t manufacture its Tread treadmill for six weeks — or its Tread+ at all — in fiscal 2022.
Peloton is working with consulting firm McKinsey & Co. to restructure the business by evaluating its cost structure and potentially eliminating jobs.