Peloton stock rose over 7% in morning trading after CEO disputed reports of massive layoffs, production halt

Peloton stock rose over 7% in morning trading after CEO disputed reports of massive layoffs, production halt

Peloton, the maker of stationary bikes and livestreamed workouts that enjoyed a surge in demand as gyms shut down during the pandemic, is considering laying off some workers and making changes to its production as the once-hot interest in its products slows.

“We now need to evaluate our organization structure and size of our team, with the utmost care and compassion,” John Foley, Peloton’s co-founder and chief executive, wrote in apost on the company’s websitelate Thursday. “And we are still in the process of considering all options as part of our efforts to make our business more flexible.”

Mr. Foley denied a report that the company would temporarily halt production of its bike. That news, reported by CNBC, whichcited internal documents, had triggered a 24 percent drop in the company’s share price on Thursday. CNBC reported that Peloton planned to pause the production of its connected fitness products from February to March.

“The information the media has obtained is incomplete, out of context, and not reflective of Peloton’s strategy,” Mr. Foley wrote, without offering more details.