The Peloton Interactive Inc. logo on a stationary bike at the company’s showroom on Wednesday, February 3, 2021 in Dedham, Massachusetts, US.
Adam Glanzman | Bloomberg | Getty Images
peloton On Tuesday it said it plans to exit all of its in-house manufacturing and will instead expand its existing relationship with Taiwanese manufacturer Rexon Industrial to turn around the money-losing business.
Peloton CEO Barry McCarthy said it is a move for the company to simplify its supply chain and fix its cost structure, which are top priorities.
“We believe this, along with other initiatives, will enable us to reduce the cash burden on the business and increase our flexibility,” McCarty said in a statement.
Shares of Peloton fell nearly 2% in premarket trading on the news.
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