Peloton Interactive will stop the in-house production of its bikes and treadmills and move manufacturing to its partners.
The move is an effort by the exercise equipment maker to simplify its operations and reduce costs.
Once a pandemic darling, Peloton’s fortunes has nose-dived following easing COVID-related restrictions and soaring costs.
The company said it will extend its partnership with Taiwan-based Rexon Industrial Corp, which will become the primary manufacturer of the hardware for Peloton’s product lines.
Peloton will also be suspending operations at its Tonic Fitness Technology Inc facility through the remainder of 2022.