Peloton saw its share price tumble by 20% after a leaked report claimed the company is to cease the production of its treadmills and bikes after demand has plunged post-pandemic.
The report, which was reported by CNBC, published details of the company’s decision from a confidential internal presentation it had acquired.
Demand for Peloton’s signature equipment has suffered a “significant reduction” due to their high prices and the reopening of gyms.
Peloton also blamed increased competitor activity on the decline of consumer demand however said that the temporary cessation of the production of its bikes and treadmills would control costs.
The company’s stock rose significantly during the pandemic as consumers raced to buy gym equipment to occupy themselves and improve personal fitness in case of a Covid-19 infection.
However the slow return to pre-pandemic life has meant that Peloton has been left with thousands of its thousand-dollar bikes and treadmills stuck in warehouses or on cargo ships, CNBC reported.
Peloton saw its market value hit a record of almost $50 billion a year ago but over $40 billion has since been lost.
The sports tech company has yet to comment on the report, with it due to reveal its next set of financials on 8 February.
The news comes at the same time as a leaked call revealed that the brand was looking at sacking around 41% of its ecommerce team after poor performance.