- Peloton Interactive Inc (NASDAQ:PTON) said it is exiting all owned-manufacturing operations and expanding its current relationship with leading Taiwanese manufacturer Rexon Industrial Corp.
- The fitness company will rely completely on partners for manufacturing in an effort to cut costs and simplify operations.
- Peloton CEO Barry McCarthy said, “Today we take another significant step in simplifying our supply chain and variablizing our cost structure – a key priority for us. We believe that this along with other initiatives will enable us to continue reducing the cash burden on the business and increase our flexibility.”
- Rexon will become the primary manufacturer of the hardware for Peloton’s Bike and Tread product lines.
- Peloton will also suspend operations at its Tonic Fitness Technology facility through the remainder of 2022.
- Price Action: PTON shares are trading higher by 5.38% at $9.40 in premarket on the last check Tuesday.
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