PELOTON is known as an American exercise equipment and media company that is famous for its bikes and treadmills.
Following a rise in sales, the company’s future has been called into question after it was reported that they were halting production.
Is Peloton stopping bike and treadmill production?
This move comes after the company reportedly faced a “significant reduction” in demand around the world “due to shoppers’ price sensitivity and amplified competitor activity,” the media outlet reports.
Peloton has also faced a decline in the stock market as the company closed the day prior down 23.9% at $24.22, bringing the stock’s market value to $7.9billion.
“We have always done our best to share news with you all first, before sharing with the public. This week, we’ve experienced leaks containing confidential information that have led to a flurry of speculative articles in the press,” the letter reads.
“The information the media has obtained is incomplete, out of context, and not reflective of Peloton’s strategy. It has saddened me to know you read these things without the clarity and context that you deserve.
Most read in US News
“Before I go on, I want all of you to know that we have identified a leaker, and we are moving forward with the appropriate legal action,” the letter continued.
“…As you have heard me and other leaders say over the past few months, we are continuing to invest in our growth, but we also need to review our cost structure to ensure we set ourselves up for continued success, while never losing sight of the important role we play in helping our 6.2+ million Members lead healthier, happier lives.”
The Sun reached out to Peloton for comment but did not receive a response prior to publication.
When will Peloton start making bikes and treadmills again?
Among the Peloton products that are supposable being halted is the Bike+, Tread treadmill, and Tread+ machines.
The company reportedly stopped making the Bike+ in December 2021 and is not expected to resume production until June.
Starting in February 2022, Peloton will also halt the production of its Tread treadmill for six weeks,” according to CNBC.
As for the Tread+ machines, the company does not anticipate producing any of them in the fiscal year, the documents state.
Who is Peloton’s founder and CEO?
Peloton first launched in 2012 after it was founded by Foley, who is also the acting CEO.
Foley is known as an American businessman who previously worked as the e-commerce president at Barnes & Noble.
Foley also worked at Mars Inc. before founding Peloton.
He earned his bachelor’s degree in science and industrial engineering from the Georgia Institute of Technology in 1994 and later obtained his MBA in 2001 from Harvard Business School.
As of January 2022, he has an estimated net worth of $350million, according to Bloomberg.