Peloton reportedly freezing hiring after shedding billions in market value as home-exercise interest fades

• Peloton is freezing hiring across all departments effectively immediately, CNBC reported.
• The news comes as the company experiences sluggish revenue as interest in home-exercise wanes.

Peloton froze hiring across all departments effectively immediately as the company shed billions in market value, CNBC reported Friday.

The company's management team first hinted towards incoming cost cuts during Thursday's quarterly earnings call.

"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 during the call, according to CNBC.

It's not clear how long the hiring freeze will last, CNBC reported.

Peloton shares dropped by 34% Friday afternoon in its biggest one-day drop ever, wiping as much as $8 billion off its market value, as home-exercise interest begins to wane as gyms reopen amid easing COVID-19 restrictions.

The company also slashed its forecasts for subscribers and sales for its full fiscal year outlook, expecting revenue to range between $4.4 billion and $4.8 billion, compared to its initial prediction of $5.4 billion, Business Insider's Harry Robertson reported.

"It is clear that we underestimated the reopening impact on our company and the overall industry," Peloton boss John Foley said in the call with shareholders.