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After enjoying rapid growth during the epidemic, which has boosted sales of exercise equipment in its homePeloton now cares to close the rail. Internal documents obtained by CNBC Peloton will soon take strict measures to control costs and consider reducing demand.

To that end, Peloton is reportedly planning to discontinue production of the premium bike + model from December to March after discontinuing production in December. The more expensive “Plus” version, which was launched just over a year ago, will be suspended until June.

Demand for this specialty has grown significantly as a result of recent corporate scandals. 2,495 Footsteps, Will not be made for six weeks starting February. According to CNBC, not a single Trade + will be created in FY 2022, ending June 30. Subject to a revocation This is due to design problems which cause injury and death of a child. Peloton still has the net Tread + republished 7 with a fix For these design issues.)

You would think that this excess of supply could force Peloton to reduce prices, but instead, the company would start charging an extra $ 250 for supplying some bikes and $ 350 for treadmills. The total cost of buying a bike is now $ 1,745 and the treadmill is $ 2,845. That delivery fee was included in the cost of the machine.

Peloton’s problems can be identified for a variety of events, but it’s clear that the company hasn’t accurately calculated for rapid market changes. In December 2020, Peloton acquired Priker, a rival exercise equipment manufacturer, and said in May last year that it would spend $ 400 million to build his first factory in OhioTheThe news came shortly after the company paid $ 100 million ships Delay the product by air.

This is because Peloton has made this huge investment Demand for this specialty has grown significantly as a result of recent corporate scandals. The fitness brand seemed to be an irresistible force, but the 2021 holiday season was not kind to the company. Late last year, Peloton lowered the price of its entry-level bikes to $ 1,495 (about 20%) to generate interest by the end of the year, but the strategy doesn’t seem to be helping boost demand. Now the company is known to have thousands of spin bikes and treadmills sitting on warehouses and cargo ships.

The company suffered a net loss of $ 372 million in the first quarter of 2022, and executives plan to lay off 41% of sales and marketing staff while considering whether to ask retailers to answer customer service calls if they are not busy. Audio recording leaked Business Insider. Following a report from CNBC and Insider, Peloton CEO John Foley said in a statement Letters from customers That company is “taking significant corrective action to improve our profit outlook and optimize our costs.”

Peloton’s value has been declining for several months, but before the crash, executives and insiders reportedly sold $ 496 million worth of stock, according to a Securities and Exchange Commission filing. Piloton’s president, William Lynch, secured $ 105 million before the stock fell more than 85% from where it peaked last year.

Peloton blames the meteoric fall on consumer price sensitivity Expensive-And the competition has increased. It’s true that Tonal, Boflex, NordicTrack, Echelon Mirror (owned by Lululemon), and others have pegged back on Peloton’s initial success and launched their own subscription-based smart home gym equipment, and at least An analyst Apple believes Fitness + takes a toll, but many of Peloton’s obstacles are self-prone.

News of declining demand comes a year after the company Two treadmills have been voluntarily withdrawn, Including Trade + who was involved in an accident where a 6-year-old child died after being pulled under equipment. The U.S. Consumer Product Safety Commission (CPSC) reported 72 cases of adults, pets and objects being dragged under the machine before recall.

There was the infamous Peloton Wife ad that led to the company being ridiculed as sexist on social media, and in previous marketing campaigns the hotheads were criticized for feeding the super-rich, ignoring the stunning views of the people riding their stationary bikes in the penthouse.

Peloton has proved that it cannot move away from controversy when a Dear Sex and the City Character Peloton died of a heart attack after taking a spin class on the Spinoff show And just like that. Company stock Immediately plummeted and released it A statement confirms the safety of his equipment. Peloton then made a parody video that featured Sex and the City Actor Chris Knott, But was later forced to remove it There were sexual allegations against the actor.

The fall of Peloton from the leaderboard may seem sudden, but there are indications that supply will eventually exceed demand. Last year, the company posted disappointing results in its November earnings report, which showed a net loss of $ 376 million in one quarter, compared to a profit of $ 69.3 million. From the previous year. At this time Peloton set up something Blame it on the apples iOS 14.5 to release a new ad tracking transparency feature that makes it more difficult for companies to target shippers based on their interests. The company is reportedly developing new products, but not fast enough clips. It will have its first scheduled release in 2022 Guiding platoonA camera that assists in energy-training workouts — not exactly what rowing machine Peloton fans are claiming.

In a rather interesting twist of irony, Apple is being touted as the buyer of Peloton. An op-ed from Information Considers Apple a “clear buyer” and others The motley flower And Inc.Are weighed.

Peloton, once the golden child of connected fitness technology, is running out of steam, and we’ll find out just how awful things are when the company unveils Its first quarterly report on 8 February.

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