Peloton Interactive announced that it will discontinue all of its own manufacturing operations and expand its current relationship with leading Taiwanese manufacturer Rexon Industrial Corp, a Taiwanese manufacturer with over 50 years of experience. The move is the next step in Peloton’s strategy to cut costs, simplify its supply chain and focus on technology and content. Rexon will become the primary hardware manufacturer for Peloton’s Bike and Tread product lines. “We plan to maintain a significant corporate and manufacturing presence in Taiwan with over 100 Peloton Taiwan team members who continue to play a key role in our engineering and manufacturing strategy,” said Andy Rendich, Peloton’s chief supply chain officer. Peloton CEO Barry McCarthy commented, “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.” As part of the expanded partnership with Rexon, Peloton will cease operations at its Tonic Fitness Technology, Inc. facility for the remainder of 2022. The company had acquired Tonic in October 2019.

Topics