Here’s the biggest mystery regarding Peloton and the exercise equipment company’s litany of problems; will there eventually be a documentary produced on the company’s collapse or just a white paper?
It’s almost like the executives stay up late at night strategizing ways to position their company as a bona fide laughingstock.
Shareholders certainly are not laughing, especially since the stock price now sits at roughly $24.00, which means all of the pandemic gains are gone.
Luckily for the CEO and other top executives and board members, they were able to cash out when the stock price was over $100 and bank an absolute fortune.
So why would they care too much that the stock tanked another 25% this week when it was leaked that they would be temporarily pausing production of bikes in treadmills next month.
Why? It appears they are over-priced, and people who care about their fitness would rather work out at a gym or health club than their den.
The halt in production comes eight months after the announcement that Peloton would ramp up production. They spent $400 million to build a factory in Ohio that is supposed to be completed in 2023. They also paid $420 million to buy equipment from Precor.
And now that the top executives are rich, they can get down to the real business of firing their workers. CNBC reported that some of the top execs have discussed laying off over 415 members of the sales and marketing teams and closing all their retail locations.