Shares of the exercise bike maker Peloton slumped as much as 27% on Thursday following a report that it was temporarily pausing production of its connected fitness products due to slowing demand and to control costs.
The company in a confidential presentation dated 10 January said demand had seen “significant reduction” and that it planned to pause bike production in February and March, according to a CNBC report. 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.
Die maatskappy, 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 remake 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 $1bn 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.