Peloton CEO John Foley acknowledged Thursday that the company is "considering all options" -- including layoffs and production restrictions -- following a report that the fitness firm has stopped manufacturing its bikes and that Treadmill has taken stock. has crashed.
His statement made no reference to any specific reports, but said that "rumours that we are stopping all production of the bike and treads" were "false".
Foley's statement came hours after CNBC reported that starting February, Peloton plans to halt production of its $1,495 lower-end bike for two months, and another six weeks, citing internal documents. Trade machines have stopped making.
The report also noted that production of Peloton's Bike+ — a high-end bike priced at $2,495 — was halted in December and will not resume until June.
While Foley said in his statement that the company is producing the "right size" in response to "seasonal demand curves".
"We are resetting our production levels for sustainable growth," he said.
According to internal documents CNBC says company executives are facing a "significant reduction" in demand for Peloton products due to its high prices and increased competition.
CNN Business has not seen the documents.
Foley's statement also pointed to possible job cuts.
"In the past, we have said layoffs would be the absolute last lever we would ever hope to pull," he said. “However, we now need to evaluate the structure of our organization and the size of our team with the utmost care and compassion. And we are still considering all options as part of our efforts to make our business more resilient.” are in the process of doing."
Shares of Peloton (Pton) sank nearly 24% on CNBC's report Thursday, its worst day in more than two months.
In his statement, Foley said that the "leak" of "confidential information" has "settled a flurry of speculative articles in the press." He called the information obtained by the media "incomplete, out of context, and not reflective of Peloton's strategy," and added that the company has identified a leaker and is "proceeding with appropriate legal action."
Peloton has attributed some of its issues to inflation and supply chain challenges. Starting Jan. 31, customers will have to pay $250 for delivery and setup for Peloton's $1,495 bike — a service the company previously included in the price. Customers who purchase Peloton's Tread Treadmill will be charged $350 for delivery and installation later this month.
"Continuing constraints are driving up costs," the company said. The announcement comes just months after Peloton drastically cut the price of its original home exercise bike to boost sagging sales.
After skyrocketing in 2020 -- Peloton's stock faltered in 2021 -- it lost 76% of its value. The company disclosed in its most recent earnings report that sales of its stationary bike and treadmill were down 17%. Those two machines are the company's bread and butter, making up 60% of its business.
Shares are down 32% for the year. Peloton (Pton) reported earnings on February 8.