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Tuesday, August 9, 2022

Peloton mulling layoffs, production changes; CEO denies report of manufacturing halt – WHIO TV 7 and WHIO Radio

Peloton’s CEO has denied rumors that the fitness company is stopping production of its stationary bikes and treadmills but confirmed that officials are considering layoffs and production changes, multiple news outlets are reporting.

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According to The New York Times and CNN, John Foley, who co-founded Peloton, said in a statement late Thursday that “leaks containing confidential information” have fueled “a flurry of speculative articles in the press.”

Although Foley didn’t reference the article directly, a CNBC report citing internal documents claimed that Peloton would temporarily stop producing its Bike for two months and its Tread for six weeks amid decreases in demand. The outlet also reported that the company already had stopped producing its Bike+ last month and didn’t plan on making more until June. Following the report, Peloton’s shares fell about 24% Thursday, according to CNN.

“The information the media has obtained is incomplete, out of context and not reflective of Peloton’s strategy,” Foley said in his statement. “It has saddened me to know you read these things without the clarity and context that you deserve. 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.”

He added that while “layoffs would be the absolute last level we would ever hope to pull,” the company must “evaluate our organization structure and size of our team.”

“We are still in the process of considering all options as part of our efforts to make our business more flexible,” the statement read.

Foley went on to say company officials “feel good about right-sizing our production.”

“As we evolve to more seasonal demand curves, we are resetting our production levels for sustainable growth,” the statement read.

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