Peloton's Public Struggles
Peloton's recent decision to publicly engage McKinsey for a cost structure review raises eyebrows, especially given McKinsey's own controversies. With revenue growth plummeting from pandemic highs, Peloton's shares have seen a staggering decline of 76%. This shift in strategy highlights the pressures faced by companies that once thrived during the pandemic but now grapple with changing expectations and market realities.In this clip
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The Prof G Pod with Scott Galloway
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Related Questions
I'm just curious on what your thought is of making such a public matter, of bringing in a company that's normally very secretive about the work they do. And second, what your thought is on bringing in a company that also has been embroiled in a lot of its own scandal in the past year?
According to CNBC, revenue grew just 6% year on year in the quarter ending last September, compared to a 250% increase in the same quarter in 2020. It's odd to say that there's a lot of companies that would be happy with 6% growth, but those companies are traded incredible multiples of revenue as Peloton was.
Peloton hired McKinsey in January to review its cost structure and potentially eliminate jobs as the pace of revenue and subscription growth has slowed significantly from pandemic highs.