Peloton will stop making its own interactive stationary bikes and treadmills, outsourcing those duties to a Taiwanese manufacturer as it attempts to revive sales that surged during the pandemic.
The New York City company, which recorded its only profitable quarters during the pandemic, is seeking to lower costs after sales slid when gyms began to reopen and cheaper knockoffs entered the market.
It will suspend manufacturing operations at the Tonic Fitness Technology plant in Taiwan for the rest of the year.
Peloton’s strategy was to bring manufacturing inhouse, believing that if sales remained robust it would reduce costs and avoid shipping complications. Sales growth doubled in 2020 and it ramped up production….