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Peloton CEO Addresses Team & Says Leaker Has Been Identified

Peloton CEO Addresses Team & Says Leaker Has Been Identified

Insider info from Peloton has been causing a stir & CEO Foley says the rumors aren’t true

Peloton, the stay-at-home stock and fitness darling of the pandemic, has grabbed headlines for weeks, and now it does that because of a leaker.

CNBC had obtained internal documents and even recordings, reporting that Peloton didn’t have plans to produce any Tread+ machines in fiscal 2022, would pause bike production for two months, and that it had hired management consulting company McKinsey to discuss job cuts. Shares of PTON have plummeted in response.

And now John Foley, Peloton’s CEO, says that CNBC’s reporting that Peloton would temporarily pause production of Bike and Tread is false. 

Foley issued a note to the Peloton team explaining that the interactive fitness company has experienced leaks “containing confidential information that have led to a flurry of speculative articles in the press.” The Peloton CEO says that the leaker’s information that the media has received is “incomplete, out of context, and not reflective of Peloton’s strategy.”

CEO Foley says that the company has strived to be transparent and provide information to employees first. “I want all of you to know that we have identified a leaker, and we are moving forward with the appropriate legal action.”

To help combat misinformation, Peloton moved to issue a pre-earnings press release that discusses the preliminary Q2 results. 

Foley confirmed that while Peloton is continuing to invest in growth, the company also needs to review the cost structure. “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. And we are still in the process of considering all options as part of our efforts to make our business more flexible,” Foley wrote. 

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Peloton’s CEO also said that the rumors of the company halting all production of bikes and Treads is false and says that Peloton feels positive about right-sizing production. Foley went on to point out that Peloton has recorded 2.9 million workouts – its highest ever number of daily workouts and that connected fitness is here to stay.

It was recently reported that Peloton executives sold nearly $500 million worth of their stock before the significant decline, according to SEC filings. Foley reportedly sold $119 million worth of Peloton’s stock starting in November 2020, according to SmartInsider.

Peloton will release its final second quarter Fiscal 2022 results after the U.S. stock market closes on Tuesday, February 8.

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