Want more from Front Office Sports
in your search results?
Over the past year, Peloton has been shrouded in controversy, and the at-home fitness company is facing another challenge on the road to recovery after warehouse workers revealed the company knowingly sent tarnished bikes to customers, according to the Financial Times.
To keep up with high demand during the pandemic, Peloton reportedly sold bikes with rust issues from a supplier in Taiwan. The company justified the move by claiming “the internal rusting had no impact on the bike’s performance,” per a spokesperson.
This latest incident adds to a growing list of issues for Peloton.
- It reported a net loss of $372 million in fiscal Q1 2022, up from a $49.8 million loss in the same period a year prior.
- Last month, the company delayed the opening of a $400 million Ohio factory due to limited demand.
- It reportedly lowered its projected apparel revenue for fiscal 2022 from $200 million to $150 million.
- Earlier this month, co-founder John Foley resigned as CEO after investor Blackwells Capital called for change.
Peloton’s leadership isn’t the only portion of its workforce being nixed. Earlier this month, the company also announced plans to cut 2,800 jobs — roughly 20% of its workforce.
It’s Not All Bad News
Earlier this week, Peloton launched “Lanebreak,” an in-app video game for owners of the Peloton Bike and Bike+. Included with a subscription, the game offers an array of music and will help Peloton realize its vision of being more than a bike and treadmill company.
Download the FOS App
The business of sports, in your pocket.
Scan the QR code to get the app now.
