Peloton Says It Will No Longer Manufacture Its Own Bikes and Treadmills

Peloton Says It Will No Longer Manufacture Its Own Bikes and Treadmills

Peloton announced that it will no longer manufacture its own bikes and treadmills in anatural progressionin the company’sstrategy to simplify its supply chain and focus on technology as it moves forward.

The company said Tuesday that Taiwanese manufacturer Rexon Industrial Corp. will take on a primary manufacturing role for Peloton’s bikes and treadmill products, expanding an already-existing partnership, 根据一个 新闻稿. In addition to the change, Peloton is suspending operations at Tonic Fitness Technology’s facilities in Taiwan, which it acquired in 2019, for the rest of the year.

Peloton CEO Barry McCarthy called the decision to stop manufacturing its own productsanother significant step in simplifying our supply chain and variablizing our cost structure,” referring to it asa key priorityfor the company in a statement.

Peloton treadmill

Peloton treadmill
Peloton Tread
| 信用: 大部队

We believe that this along with other initiatives will enable us to continue reducing the cash burden on the business and increase our flexibility,” McCarthy said in the release.

Peloton chief supply chain officer Andy Rendich called Rexona proven partner for our global operations,” and said in the release that the company plans to retaina significant corporate and manufacturing presence in Taiwan” 向前进. The company’s moves will result in layoffs for about 570 employees in Taiwan at Tonic Fitness Technology, which previously helped build its bike models after its purchase in 2019, 根据 彭博新闻. Rendich said over 100 Peloton employees will remain in Taiwan to work with the company’s new external partners.

The company has made drastic changes in recent months to combat a drop in demand for new Peloton products and dips in membership. After interest spiked for Peloton early in the COVID-19 pandemic with people at home, the company had announced that it would open its first factory within the U.S. to meet higher demand, 根据 彭博社. But since then, any plans for that facility have been set aside, 美国有线电视新闻网 报道.

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And in February, Peloton co-founder and then-CEO John Foley stepped down and was replaced by McCarthy, a former CFO at Spotify and Netflix. The company also laid off 2,800 employees — about 20 percent of its entire workforce — at that time.

Foley called that announcementone of the more challenging ones in our historyin the letter.

不错过任何一个故事——注册 人们的免费每日通讯 及时了解人们所提供的最好的东西, 从多汁的名人新闻到引人入胜的人类兴趣故事.

他加了, “Let me be clear about one thing: this team has built Peloton into what it is today. And this means YOU. Brick by brick, this team has developed the hardware, software, content, delivery and retail experience that is helping improve the lives of millions of Members. This is rare and powerful.

Just weeks before the February layoff announcement announcement, Peloton temporarily halted all production of its bikes and treadmills in response to asignificant reductionin demand, according to internal documents obtained by CNBC — a decision that Foley denied at the time.