Peloton Will No Longer Make Its Own Bikes
Uh oh – this doesn’t sound good…
News just broke that Peloton Will No Longer Make Its Own Bikes…
In a press release, Peloton called the change a “natural progression” in reference to shutting down its factories to make Peloton exercise equipment.
Taiwanese manufacturer Rexon Industrial Corp. will become the primary manufacturer of its exercise equipment in the future.
“We believe that this along with other initiatives will enable us to continue reducing the cash burden on the business and increase our flexibility,”
CEO Barry McCarthy
Peloton has been struggling as people have gone back to the gym and other methods of exercising.
Even Peloton’s bike and subscription sales have stagnated.
Basically, the company has too much inventory, and demand is on the decline and Peloton is struggling.
The saddest part of it all is that nearly 600 employees at Tonic will be laid off, according to Bloomberg News.
Let’s hope they are able to find other employment because that is just awful.