Peloton pauses production of its fitness equipment as unsold bikes and treadmills pile up

Worse than a fake death on “Sex and the City”... Mr. Big news: Peloton is temporarily halting production of its spin bikes and treadmills, CNBC reports. In a confidential presentation, Peloton reportedly said that demand for its connected fitness equipment has faced a “significant reduction” since mid-pandemic. Picture: thousands of unsold bikes and treads sitting in storage depots.

• Peloton stock tanked 24% yesterday to below its IPO price, and was temporarily halted for trading. Shares have lost 70% of their value since November.
• Peloton plans to pause bike production for two months and treadmill production for six weeks. The pricier "+" versions of each will be paused even longer.
• Last year, Peloton majorly fumbled its response to demands to recall its Tread+ after thousands of injuries and one death. It belatedly issued a recall in August.

Pre-Zoom Beyoncé ride... Early in the pandemic, people rushed to snap up Peloton’s $2K bikes and $4K treadmills. Sales nearly tripled, subscriptions more than doubled, and it even turned a profit. But since all that demand was "pulled forward" and IRL workouts have returned, Peloton's growth has dramatically slowed. It lost $376M last quarter, and the new year is off to an even rougher start…

• 1st: CNBC reported that Peloton hired McKinsey to consult on its cost structure, which could translate to layoffs and store closures. It has reportedly started cutting jobs already.
• 2nd: SEC filings showed that Peloton insiders sold ~$500M worth of shares before the stock plunged earlier this week.