Peloton Shares Fall After Report It Is Pausing Production Of Fitness Equipment
(CBS News) -- Peloton Interactive shares plunged on Thursday after a report that the company is suspending production of its home fitness equipment because of waning consumer demand.
According to CNBC, which cited internal company documents, Peloton next month will temporarily stop making its entry-level connected bike for a period of two months, and stop producing its basic treadmill for six weeks. The company doesn't plan to manufacture any of its pricier Tread+ machines in fiscal 2022, the media outlet reported.
In May of 2021, Peloton recalled both its treadmill models after the death of a child was linked to the Tread+, as well as dozens of injuries in which people sustained broken bones, lacerations, and abrasions. The previous month, the U.S. Consumer Product Safety Commission had warned users with children and pets to stop using the machines, citing multiple incidents of people and animals being pulled under the treadmill.
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