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The company in a confidential presentation dated Jan. 10 said demand had seen “significant reduction” and that it plans to pause bike production in February and March, according to a CNBC report https://www.cnbc.com/2022/01/20/peloton-to-pause-production-of-its-bikes-treadmills-as-demand-wanes.html?__source=google%7Ceditorspicks%7C&par=google. It also won’t manufacture the Tread treadmill machine for six weeks, beginning next month.
Peloton is not looking to produce any Tread+ machines in fiscal 2022, the report added.
The company, once a pandemic darling, had announced in May a recall of its treadmills after reports of multiple injuries and the death of a child in an accident.
Peloton was also the subject of a “Sex and the City” episode last month that suggested the company’s exercise bikes could be lethal. It later responded with a parody ad of its own.
Peloton slashed its full-year outlook by up to $1 billion in November, saying demand for its exercise bikes and treadmills was slowing faster than expected. Analysts have warned of a tough path ahead for the company as people begin venturing out of their homes.
Peloton, whose shares dropped below the IPO price of $29 to hit a near two-year low, did not immediately respond to a Reuters request for comment.
