What happened Connected-fitness company Peloton Interactive (NASDAQ: PTON) is bringing in outsiders to evaluate its finances, and that's causing the stock to drop sharply today. As of 10 a.m. ET, Peloton stock is down almost 5% and down more than 80% from its all-time high last year. So what According to CNBC, Peloton management is bringing in McKinsey & Co. to advise the company on its finances. Layoffs could be on the table. They will also reportedly look at cutting underperforming business units like the recently launched apparel division. And store closures are also a possibility. Image source: Getty Images. Now what For me, today's news isn't a surprise -- Peloton's primary struggle at the moment is lack of financial control. Take two recent developments as examples. First, management lowered prices for its stationary bikes and treadmills late in 2021 in an effort to attract more users. However, the company just added delivery fees to these devices, offsetting the price cuts in an apparent contradiction. Second, in the most recent quarterly conference call, Peloton's CFO said the company didn't need to raise capital. But less than two weeks later, it announced it was raising $1 billion by selling stock. Actions like these communicate a need for greater financial control from management. Consider that in the first quarter of fiscal 2022 (the most recent quarter), total revenue for Peloton was up only 6% year over year. But gross margin dropped from 43% in the previous-year period to 33% this year. And operating expenses increased 140%, resulting in a massive quarterly loss from operations of $360 million. For these reasons, bringing in outside help from McKinsey & Co. is a prudent move by Peloton, in my opinion. The company needs to tighten its belt, so to speak, and this could be the first step toward solving its biggest problem. 10 stocks we like better than Peloton InteractiveWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Peloton Interactive wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Jon Quast owns Peloton Interactive. The Motley Fool owns and recommends Peloton Interactive. The Motley Fool has a disclosure policy.Source