Cari Gundee rides her Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California. More people are turning to Peloton due to shelter-in-place orders because of the coronavirus (COVID-19).
Ezra Shaw | Getty Images
Peloton halted hiring across all departments effective immediately during an all-hands meeting on Friday, CNBC has learned, a day after after it slashed its full-year outlook amid slowing momentum for its fitness products.
It wasn’t immediately clear how long the hiring freeze will last.
A Peloton spokesperson didn’t immediately respond to CNBC’s request for comment.
Peloton’s management team had hinted to analysts during a conference call on Thursday that it would be making cost cuts in the near future to realign with its sluggish revenue and user growth.
“Some of these identified areas of savings include making significant adjustments to our hiring plans across the company, optimizing marketing spend and limiting showroom development…,” Chief Financial Officer Jill Woodworth said on the call.
Peloton’s stock closed Friday down 35%, wiping roughly $10 billion off its market value.
The company saw rapid growth in 2020, as consumers took on stay-at-home lifestyles during the pandemic. And Peloton invested heavily to meet that demand.
Now, however, as more people return to gyms or decide to purchase another at-home fitness option, Peloton is scrambling to readjustment for the future.
This story is developing. Please check back for updates.
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