Peloton to stop making bike, tread products in-house, cut about 570 jobs [View all]
Source: Reuters
July 12, 2022
1:04 PM EDT
Last Updated 17 hours ago
Peloton to stop making bike, tread products in-house, cut about 570 jobs
By Kannaki Deka
July 12 (Reuters) - Exercise equipment maker Peloton Interactive (PTON.O) said on Tuesday it will cease all in-house production of its bikes and treadmills and move manufacturing to partners in an effort to simplify its operations and reduce costs.
The New York-based firm will cut around 570 jobs at its Tonic Fitness Technology unit, a Taiwan-based firm bought by Peloton in 2019, according to a source familiar with the matter.
Peloton did not immediately respond to a request for comment. The company will also be suspending operations at the facility through the remainder of 2022, it said in a statement earlier on Tuesday.
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The company, under new chief executive Barry McCarthy, has moved to cut costs and shore up capital this year after demand for its popular home equipment dropped as people went back to working out at gyms.
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Read more: https://www.reuters.com/technology/peloton-exits-in-house-manufacturing-operations-2022-07-12/
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