Shortly after leaked Peloton documents had been shared with the press, which steered the connected-fitness firm was pausing the manufacturing of its treadmills and bikes, the corporate has introduced that Peloton will pursue legal action against the alleged leaker.
The information of the manufacturing halt despatched Peloton shares tumbling over 23% yesterday. Nevertheless, a company memo shared by cofounder and CEO John Foley helped raise the replenish over 6% in pre-market buying and selling Friday. Foley’s memo refutes the first message of the leaked paperwork, saying “The data the media has obtained is incomplete, out of context, and never reflective of Peloton’s technique.”
Foley additionally goes on to state the corporate has recognized the leaker and will proceed to take legal action. The CEO additionally identified, in daring textual content, that “Rumors that we’re halting all manufacturing of bikes and Treads are false”—but “all” will be the key phrase right here.
Given the rise in Peloton’s inventory in pre-market buying and selling, Foley’s memo appears to have alleviated some traders’ fears, though it will possible ship shivers via a few of Peloton’s staff. That’s as a result of the memo additionally alludes to potential upcoming layoffs.
“Previously, we’ve mentioned layoffs can be absolutely the final lever we might ever hope to drag,” Foley wrote. “Nevertheless, we now want to judge our group construction and dimension of our workforce, with the utmost care and compassion. And we’re nonetheless within the strategy of contemplating all choices as a part of our efforts to make our enterprise extra versatile.”