double-skinned crabs double-skinned crabs double-skinned crabs double-skinned crabs double-skinned crabs double-skinned crabs double-skinned crabs double-skinned crabs double-skinned crabs double-skinned crabs double-skinned crabs double-skinned crabs vietnamese seafood double-skinned crabs mud crab exporter double-skinned crabs double-skinned crabs crabs crab exporter soft shell crab crab meat crab roe mud crab sea crab vietnamese crabs seafood food vietnamese sea food double-skinned crab double-skinned crab soft-shell crabs meat crabs roe crabs

Breaking News

Matt Gaetz reveals if he will rejoin Congress next year
Business

Peloton CEO denies halting production, says company identified leaker

By
Thomas Barrabi
Published Jan. 21, 2022
Updated Jan. 21, 2022, 12:42 p.m. ET

Embattled Peloton CEO John Foley denied the company is pausing production of its fitness equipment hours after reports detailed a manufacturing halt due to sagging demand.

In a note to employees published Thursday night, Foley acknowledged that Peloton was “resetting our production levels for sustainable growth.” But he added that reports the company was “halting all production of bikes and Treads are false.”

Foley, whose leadership has drawn criticism in recent weeks, added that Peloton has “identified a leaker” providing information to the media and would be “moving forward with the appropriate legal action.”

“This week, we’ve experienced leaks containing confidential information that have led to a flurry of speculative articles in the press,” Foley said in the note. “The information the media has obtained is incomplete, out of context, and not reflective of Peloton’s strategy. It has saddened me to know you read these things without the clarity and context that you deserve.”

Foley’s note followed CNBC’s report that Peloton would temporarily halt production of its flagship bike and treadmill products due to a “significant reduction” in demand. Peloton shares plunged nearly 24 percent by market close Thursday following the report, erasing more than $2 billion in value.

The Post reported Peloton is delaying the opening of its $400 million factory in Ohio from 2023 to 2024 due to a backlog of inventory. A source said Peloton’s warehouse and delivery centers have cut back to 20 hours per week.

John Foley, Cofounder and CEO of Peloton speaks onstage during 'Peloton Gears Up' at Vanity Fair's 6th Annual New Establishment Summit at Wallis Annenberg Center for the Performing Arts on October 23, 2019 in Beverly Hills, California.
Peloton CEO John Foley denied the company is pausing production of its equipment, even thoughts reports say otherwise. Photo by Matt Winkelmeyer/Getty Images for Vanity Fair

Foley also addressed the possibility of layoffs at Peloton after CNBC’s report noted cuts had already begun in its sales division. The fitness company has reportedly hired consulting firm McKinsey to review its cost structure, which could result in job cuts or store closures.

“In the past, we’ve said layoffs would be the absolute last lever we would ever hope to pull,” Foley said. “However, we now need to evaluate our organization structure and size of our team, with the utmost care and compassion.”

The Peloton CEO added the company was “considering all options as part of our efforts to make our business more flexible.”

In a separate pre-earnings release, Peloton said it now expects revenue of $1.14 billion in its second fiscal quarter of 2022, up from its previous guidance of $1.1 billion to $1.2 billion. The company expects to report 2.77 million connected fitness subscribers as of the quarter’s end, down slightly from its forecast range.

The company will report earnings on Feb. 8.

Peloton’s stock rebounded about 7 percent in premarket trading Friday after Foley’s note surfaced.

Woman doing exercises near a Peloton.
John Foley, whose leadership has drawn criticism in the last few weeks, said Peloton has found “a leaker” providing information to the media. He added the company will deal with them accordingly. Courtesy of Peloton

Peloton shares have plunged from highs achieved in the early months of the COVID-19 pandemic, when homebound consumers invested in at-home workout equipment. The stock is down more than 80 percent over the last 12 months.