The US Consumer Product Safety Commission has announced a recall of approximately 833,000 Peloton Original Bike+ Model PL02 exercise bikes. This action is due to safety concerns regarding the seat post assembly, which may break during use and cause falls.
Details of the Recall
The recall follows reports of the seat post detaching in three separate incidents, two of which resulted in injuries. Consumers are strongly advised to stop using the affected bikes immediately.
Repair Offer
Peloton is providing a free repair option for customers, which includes a replacement seat post that can be self-installed.
Past Recalls
- In 2023, Peloton voluntarily recalled over 2 million of its original model bikes due to similar issues with the seat post.
Company Performance
Peloton’s shares have seen a decline of 18.1% year-to-date. On the day of the recall announcement, the stock dropped 6.5% in New York.
Cost-Cutting Measures
As part of a broader turnaround strategy, Peloton has been reducing costs and workforce. In August, the company disclosed plans to cut 6% of its global workforce. This comes as the company aims to manage increased expenses linked to Donald Trump’s tariffs.
Financial Implications
The latest tariffs are anticipated to impact Peloton’s free cash flow by approximately $65 million by 2026.
