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The wheels aren’t coming off Peloton’s business model just yet, but the fitness-tech firm has been forced on the defensive after reports that it is halting production of its bike and treadmill products.

CNBC reported that the move comes “as consumer demand wanes and the company looks to control costs”, citing internal documents as its source. CEO John Foley quickly published a partial rebuttal, claiming that this information was “incomplete, out of context, and not reflective of Peloton’s strategy”.

However, it’s clear that there are some challenges. “In the past, we’ve said layoffs would be the absolute last lever we would ever hope to pull. However, we now need to evaluate our organization structure and size of our team, with the utmost care and compassion,” wrote Foley, before describing Peloton’s hardware strategy as “right-sizing our production… as we evolve to more seasonal demand curves”.

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