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Peloton Interactive Inc (NYSE: PTON) is temporarily halting production of its connected fitness products as demand falls significantly.
According to a CNBC report, Peloton plans to pause Bike production for two months, from February to March. In December, the company halted production of Bike+, its more expensive product, until June.
Peloton will also not manufacture Tread treadmill machine for six weeks, starting next month, the report says.
After a safety recall last year, Peloton had halted Tread+ production. It does not expect to manufacture any Tread+ machine in fiscal 2022.
Demand for fitness machines had boosted during the beginning of the coronavirus pandemic, but due to shoppers’ price sensitivity and increased competition, the demand has reduced significantly.
Peloton has surplus fitness equipment in the warehouses with no demand. Over the past year, market cap of Peloton has been shaved off of $40 billion.
Shares of the company fell 23.9% on Thursday at $24.22. Shares hit a 52-week low of $23.25 during trading.
Picture Credits: Reuters