According to internal documents obtained by CNBC, Peloton is temporarily pausing production of its linked fitness gadgets to reduce expenses.
Documents suggest Peloton will halt Bike manufacture for two months in February and March.
It stopped making its Bike+ in December and will do so until June.
It will stop making its Tread treadmill for six weeks starting next month.
The business said in a Jan. 10 secret presentation that global demand for its linked exercise equipment had fallen “significantly” owing to price sensitivity and increased competition activity.
Peloton overestimated demand for its products due to the coronavirus outbreak.
It now has thousands of cycles and treadmills in warehouses or on cargo ships and must replenish its inventory.
Around $40 billion has been wiped off Peloton's market valuation in the last year.
Its market cap topped $50 billion in January.
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