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Peloton Suspending Live Classes; Employee Tests Positive for COVID-19

By Eric Volkman – Apr 6, 2020 at 6:25PM

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The company also announced a pair of charity initiatives.

The SARS-CoV-2 coronavirus has slammed into Peloton Interactive (PTON -0.93%). Various media outlets report that the company admitted on Friday that one of its employees tested positive for the COVID-19 disease caused by the coronavirus. This person works at the company's New York production studio.

No details about this individual's condition have yet been released.

Two people in a room, with one using an exercise bike.

Image source: Peloton Interactive.

Peloton subsequently issued an operational update, in which it said it was halting the production of live classes in its facilities in both New York and London through April 30. During that suspension, it will add pre-recorded content for its subscribers. Peloton members pay either $12.99 per month for a single-user membership or $39 for a monthly multi-user pass to stream the company's live and recorded content.

The exercise hardware and streaming company also said it is pledging $1 million to cover two months of such membership fees for users experiencing financial hardship over the coronavirus. Because it has resulted in business shutdowns and employee fuloughs throughout the world, the outbreak has had deleterious effects on many economies.

Also, Peloton said it will extend its Comeback Program, a charity initiative in which it donates its exercise bikes to healthcare facilities. It's adding 100 bikes to the program during the pandemic.

"We are grateful to be a source of support and community as we continue to navigate these challenging times together," the company wrote in its update.

In contrast to the notable gains recorded by the market's top stocks and indexes, Peloton's shares dipped by 1.3% on Monday.

 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Peloton Interactive. The Motley Fool has a disclosure policy.

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