Peloton Interactive (NASDAQ: PTON) may have walked back its CEO's statement that if the connected fitness equipment maker failed to make good on its turnaround in six months, it would no longer be a viable stand-alone company, but investors shouldn't dismiss the original report so fast.
So far, there is no proof Peloton's strategy is working and, in fact, the company continues to take a meat cleaver to its employment roster to cut costs. The connected fitness guru is firing another 12% of its staff, some 500 employees, as it tries to discover just how thin its ranks can be shaved and still operate effectively.
It's got $1.2 billion in the bank and $500 million in credit available, but Peloton just burned through $1.7 billion over the last three quarters, so the wick is burning pretty low.
Source Fool.com