Shares in Peloton, the connected fitness firm, have fallen by more than 20% on a report the company is to cease production of its treadmills and bikes because of plunging demand.

Trading in the Nasdaq-listed stock was temporarily halted after Sky’s sister news provider CNBC published details of the company’s apparent decision which, it said, were contained in a confidential internal presentation it had obtained.

CNBC said the document, dated 10 January, showed that demand for Peloton’s equipment had suffered a “significant reduction” globally due to price sensitivity among customers.

It also blamed amplified competitor activity and said a short cessation of treadmill and exercise bikes, for two months during February and March, would help control costs.

Peloton had been among the early winners of the COVID pandemic – with demand for its products surging as big advertising campaigns offered connected fitness sessions from the comfort of a subscriber’s home during lockdowns to safeguard public health.

However, a gradual return to normal life – with gyms reopening – meant Peloton had been left with thousands of cycles and treadmills sitting in warehouses or on cargo ships, CNBC reported.

Its market value hit a high of almost $50bn a year ago but over $40bn of that has been lost since, when Thursday’s falls are included.

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The company was yet to comment on the report.

Its troubles have coincided with the wider Nasdaq index falling into so-called ‘correction territory’ on Wednesday night – meaning it had closed 10% below its 22 November record high.

Peloton is due to reveal its next set of financial results on 8 February.

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