Peloton has halted production of its bikes and treadmills, following a “significant reduction” of demand for its wares.
Internal documents obtained by CNBC outline a two-month pause in production of the Peloton Bike in February and March, with production already stopped for the Bike+, which won’t resume until June.
Production of the Tread will take a six-week break from February, and no Tread+ units will be made at all during the 2022 fiscal year.
This is a sharp turn of events for the company, who struggled to keep up with demand during the peak of the pandemic. Last May it commited A$556 million to build a new Ohio factory, to meet rising orders.
Last week, it emerged that consulting firm McKinsey had been brought in to restructure the company, no doubt cutting jobs in the process. Peloton’s stock was down 71 per cent from the previous year at the end of 2021.
