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https://www.wsj.com/articles/peloton-interactive-exiting-manufacturing-operations-11657624590

Peloton to Stop Making Bikes Itself

Company is seeking to cut costs after misjudging demand for connected fitness equipment; Taiwanese manufacturer to take over production

Peloton has been on a wild ride, announcing its CEO was stepping down and thousands of jobs would be cut, despite seeing a surge in sales early in the pandemic. Here’s why Peloton became a viral success, and why it’s spinning out now. Photo illustration: Jacob Reynolds

Why Peloton Spun Out: What Happened to the Bike and Treadmill Firm — Peloton has been on a wild ride, announcing its CEO was stepping down and thousands of jobs would be cut, despite seeing a surge in sales early in the pandemic. Here’s why Peloton became a viral success, and why it’s spinning out now. Photo illustration: Jacob Reynolds

By Sharon Terlep

Updated July 12, 2022 8:41 am ET

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Peloton Interactive Inc. PTON -12.63%▼ will outsource all manufacturing of its stationary bikes and treadmills as the money-losing maker of connected fitness equipment races to overhaul its business model.

The New York company said Taiwanese manufacturer Rexon Industrial Corp., which has been working with Peloton for years, will become the primary maker of hardware for its bike and tread product lines.

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