His statement did not reference any specific report, but said “rumors that we are halting all production of bikes and Treads” were “false.”
The report also said that production of Peloton’s Bike+ — a higher-end bike that costs $2,495 — was halted in December and won’t resume until June.
While Foley did say in his statement that the company is “right-sizing” production in response to “seasonal demand curves.”
“We are resetting our production levels for sustainable growth,” he added.
According to internal documents CNBC says it viewed, company executives are facing a “significant reduction” of demand for Peloton products because of its high prices and increased competition.
CNN Business has not seen the documents.
Foley’s statement also alluded to potential job cuts.
“In the past, we’ve said layoffs would be the absolute last lever we would ever hope to pull,” he said. “However, we now need to evaluate our organization structure and size of our team, with the utmost care and compassion. And we are still in the process of considering all options as part of our efforts to make our business more flexible.”
In his statement, Foley said that “leaks” of “confidential information” have “led to a flurry of speculative articles in the press.” He called the information obtained by the media is “incomplete, out of context, and not reflective of Peloton’s strategy,” and added the company has identified a leaker and is “moving forward with the appropriate legal action.”
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