Peloton, in a note on its website, confirmed it is considering layoffs, but denied a report that the company would temporarily halt production of its bikes to realign supply with softer demand. In a separate press release, Peloton indicated its fiscal second-quarter revenue would be within its previously forecasted range.

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

Foley also said a report from CNBC earlier on Thursday that Peloton had planned to pause the production of its connected fitness products from February to March was not completely accurate. CNBC’s report cited internal documents signaling the move, and its report was largely responsible for Peloton’s stock plunging 24 percent on Thursday.

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

Foley said more details on the restructuring would be shared when Peloton released its quarterly earnings report on February 8.

In a separate release, Peloton released preliminary results for the fiscal second quarter that ended in December showing sales were in line with guidance and with the loss in the period slightly better than guidance.

The updated outlook calls for:

  • Total revenue of approximately $1.14 billion, versus previously provided guidance of $1.1 billion to $1.2 billion;
  • Ending connected fitness subscriptions of approximately 2.77 million versus previously provided guidance of 2.8 million to 2.85 million;
  • Average Net Monthly Connected Fitness Churn of 0.79 percent;
  • Adjusted EBITDA in a range of $(270) million to $(260) million, versus previously provided guidance of $(350) million to $(325) million.

Foley said in the release, “As we discussed last quarter, we are taking significant corrective actions to improve our profitability outlook and optimize our costs across the company. This includes gross margin improvements, moving to a more variable cost structure and identifying reductions in our operating expenses as we build a more focused Peloton moving forward.  This work is still underway, and we expect to have more details to share when we report earnings on February 8, 2022.“