Peloton to stop making fitness equipments in-house, cuts about 570 jobs
Peloton Interactive Inc (NASDAQ: PTON) on Tuesday said it would stop in-house production of its bikes and treadmills and is moving its hardware manufacturing to Taiwanese company Rexon Industrial Corp to simplify its operations and reduce costs
By Arghyadeep Dutta
Published - Jul 12, 2022, 03:32 PM ET
Last Updated - Mar 11, 2024, 10:24 AM EDT
• CEO McCarthy said this step will simplify supply chain and fix cost structure, a top priority for Peloton
Exercise equipment maker Peloton Interactive Inc (NASDAQ: PTON) on Tuesday said it would stop in-house production of its bikes and treadmills and is moving its hardware manufacturing to Taiwanese company Rexon Industrial Corp to simplify its operations and reduce costs.
The New York-based company will suspend its operations at its manufacturing facility, Tonic Fitness Technology Inc, through the remainder of 2022.
Peloton will also cut around 570 jobs at Tonic, a Taiwan-based firm, which the fitness equipment maker bought in 2019, Reuters reported, citing a source familiar with the matter.
