Peloton on Thursday said it’s considering staff layoffs and making changes to its production as part of “corrective action” to cut costs as the company adjusts to more seasonal demand for its connected fitness products.

“We feel good about right-sizing our production,” said CEO John Foley in a post on the company’s website Thursday. “As we evolve to more seasonal demand curves, we are resetting our production levels for sustainable growth.”

The update from the company follows a CNBC report on Thursday that said Peloton plans to temporarily stop production of its Bike in February and March and won’t make its Tread treadmill for six weeks starting in February.

The company already paused production of the upgraded, more expensive Bike Plus in December and won’t resume until at least June, reported CNBC, citing internal company documents. Peloton reportedly may not produce any of the larger and heavier Tread Plus in the 2022 fiscal year. 

Foley pushed back on the report, saying the information obtained by the media is “incomplete, out of context, and not reflective of Peloton’s strategy,” but he didn’t provide more details. He added that the company has “identified the leaker” and is moving forward with legal action. 

Foley said Peloton will have more information to share when it reports earnings on Feb. 8.

Demand for Peloton’s Bike, which starts at $1,495, and other equipment spiked early in the COVID-19 pandemic as people looked to improve their at-home fitness routine. But over the past year, the company has faced slowing demand and other hurdles. In May 2021, Peloton issued a voluntary recall of the newer Tread and Tread Plus because of reports of injuries and a potentially fatal risk to children and pets. In December, Peloton pulled a viral ad featuring Sex and the City’s Chris North following sexual assault allegations against the actor. 

Peloton didn’t respond to a request for additional comment. 

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