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Calling the change a “natural progression” in a statement Tuesday, Peloton said Taiwanese manufacturer Rexon Industrial Corp. will become the primary manufacturer of its exercise equipment in the future. As a result, Peloton will shut down its factories operated by Tonic Fitness Technology, a company it bought in 2019.
“We believe that this along with other initiatives will enable us to continue reducing the cash burden on the business and increase our flexibility,” said CEO Barry McCarthy in a press release.
Peloton also said that it will suspend manufacturing at Tonic “through the remainder of 2022,” signaling a dramatic slowdown in orders. The company has been slowing down production for many months as the popularity of its products wanes. Just one year ago, Peloton (PTON) announced that it was building its own $400 million factory in Ohio to meet demand. Those plans have since been scrapped.
Other pieces of its equipment, including touchscreens and an upcoming rowing machine,…
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