Peloton to stop making bike, tread products in-house, cut about 570 jobs

[Eugene]

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/

[hlthe2b]

1. the "darling" of the pandemic...

Maybe, like me, most people prefer not to be screamed and screeched at by some amped-up MTG-wannabe or a bullying drill Sargeant type when they work out? Those ads of people being derided and abused like that in the wee hours of the morning were so appalling to me.

[Tomconroy]

2. Based on my personal experience, exercise bikes become

coat racks after about six months.

[3Hotdogs]

4. I beat ya to it.

Mine was moved to the basement after two months. Gym membership lasted a few months before I realized I didn't enjoy it.

Four years ago, I joined a hiking club. Average, 15 miles a week. I'm 80 and sometimes lead the hikes up 400 -900 ft climbs, depending on where the hike is.

[Tomconroy]

5. I enjoy walking. That I can do.

[maptap22]

3. I just bought one...

And I absolutely love it! Many classes to choose from and no one yells at you. It is very motivating. No regrets at all of the purchase.