Exercise bike maker Peloton Interactive Inc is temporarily pausing production of its connected fitness products as demand wanes and the company looks to control costs, CNBC reported on Thursday, citing internal documents, sending shares down 25 per cent.
The company, in a confidential presentation dated January 10 said demand had seen “significant reduction” and that it plans to pause bike production for two months, February and March, according to a CNBC report. It also won’t manufacture its Tread treadmill machine for six weeks, beginning next month.
Once a pandemic darling, Peloton slashed its full-year outlook by up to US$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 hit a near-year low, did not immediately respond to a Reuters request for comment.