Peloton Says It Will No Longer Manufacture Its Own Bikes and Treadmills

Mar. 15, 2025

Peloton bike.Photo: Adam Glanzman/Bloomberg via Getty

Peloton announced that it will no longer manufacture its own bikes and treadmills in a “natural progression” in the company’s “strategy to simplify its supply chain and focus on technology as it moves forward.

The company said Tuesday that Taiwanese manufacturer Rexon Industrial Corp. will take on a primary manufacturing role for Peloton’s bikes and treadmill products, expanding an already-existing partnership, according to apress release. In addition to the change, Peloton is suspending operations at Tonic Fitness Technology’s facilities in Taiwan, which it acquired in 2019, for the rest of the year.

Peloton CEO Barry McCarthy called the decision to stop manufacturing its own products “another significant step in simplifying our supply chain and variablizing our cost structure,” referring to it as “a key priority” for the company in a statement.

Peloton Tread.Peloton

“We believe that this along with other initiatives will enable us to continue reducing the cash burden on the business and increase our flexibility,” McCarthy said in the release.

Peloton chief supply chain officer Andy Rendich called Rexon “a proven partner for our global operations,” and said in the release that the company plans to retain “a significant corporate and manufacturing presence in Taiwan” moving forward. The company’s moves will result in layoffs for about 570 employees in Taiwan at Tonic Fitness Technology, which previously helped build its bike models after its purchase in 2019, according toBloomberg News. Rendich said over 100 Peloton employees will remain in Taiwan to work with the company’s new external partners.

The company has made drastic changes in recent months to combat a drop in demand for new Peloton products and dips in membership. After interest spiked for Peloton early in the COVID-19 pandemic with people at home, the company had announced that it would open its first factory within the U.S. to meet higher demand, according toBloomberg. But since then, any plans for that facility have been set aside,CNNreported.

RELATED VIDEO: Dads Make Mini Peloton For Daughter Who is Obsessed With Their Bike

Foley called that announcement “one of the more challenging ones in our history” in the letter.

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source: people.com