Peloton Exits In-House Production As Part Of Turnaround

Peloton Interactive Inc 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.