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On Thursday, Peloton CEO John Foley sent a memo to the Peloton team in the form of an open letter on its website, firing back at a report by CNBC alleging to have obtained internal documents detailing the company’s plans to halt production of its bikes and treadmills because of waning demand. The CNBC story sent Peloton shares down 24% on Thursday — its worst figure in more than two months.
“This week, we’ve experienced leaks containing confidential information that have led to a flurry of speculative articles in the press,” Foley wrote. “The information the media has obtained is incomplete, out of context and not reflective of Peloton’s strategy. It has saddened me to know you read these things without the clarity and context that you deserve.”
Related: Lululemon Hits Peloton With a Lawsuit for Its ‘Knockoff’ Designs
The CEO added that Peloton may implement cost-cutting as the company evaluates its structure and size, but “layoffs would be the absolute last lever we would ever hope to pull.”
Foley continued: “As you have heard me and other leaders say over the past few months, we are continuing to invest in our growth, but we also need to review our cost structure to ensure we set ourselves up for continued success, while never losing sight of the important role we play in helping our 6.2+ million Members lead healthier, happier lives.”
The company also issued a pre-earnings press release about the company’s preliminary Q2 results “in order to offer an initial and more accurate picture of our business performance.” In the report, Foley wrote that he will have more details to share when the company formally reports earnings on February 8.
Peloton was up 6.81% over a 24-hour period as of Friday morning.
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