Peloton Pauses Production Following a Significant Reduction in Demand

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Peloton Pauses Production Following a Significant Reduction in Demand
24 Jan 2022
5 min read

News Synopsis

Peloton, the exercise equipment and media company is pausing the production of its fitness products due to the significant fall in global demand. The stock of the company dropped 16%. 

It is believed that the company will stop the production of entry-level Bikes for February and March and the production of basic tread will be paused for six weeks from next month. It has already stopped the production of its most expensive product, Peloton Bike+ in December and does not plan to start the production of Peloton Tread+ in this financial year.

The Chief Commercial Officer at Peloton, Kevin Cornils has said that the company was operating at a low general margin on bikes and a negative gross margin on treads. The price cut also did not work as the company expected it to work as the margins were horribly going down.

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