Peloton CEO denies halting production, blames 'leaker' for rumors

Connected fitness specialist, Peloton has confirmed co-founder John Foley is to leave the company as part of a wide-ranging restructure that will see 2,800 job cuts as it adapts to lower demand in a post-lockdown world.

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Peloton manufactures high-end exercise bikes and treadmills supported by a highly-integrated subscription service that includes social features and live instruction classes.

Interest in its products increased significantly during the pandemic, with gyms closed and fitness classes suspended.

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However, the easing of lockdown restrictions has seen orders decline and Peloton’s market value fall from $50 billion to around $8 billion over the past 12 months. This has made the company an attractive target to suitors, with Amazon, Apple and Nike all linked with a takeover, and intensified investor discontent.

In a bid to cut costs by up to $800 million and lay a foundation for long-term, sustainable growth, Peloton says it will reduce its manufacturing footprint, outsource more of its delivery and distribution, and reduce its workforce. Of the 2,800 jobs at risk, around a fifth will be at a corporate level.

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Foley will remain as executive chair and will be replaced by former Spotify chief financial officer, Barry McCarthy.

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