The company was a darling earlier in the pandemic when gyms shuttered and people were forced to devise home workout plans. That situation changed drastically in recent months in a reopened economy. Warehouses piled up with unsold Peloton products, while subscriber growth cooled.
The firm earlier this year tapered off production of its hardware and replaced Co-founder and CEO John Foley with Barry McCarthy, a veteran of Spotify and Netflix. This week, it named Taiwan-based Rexon as its primary manufacturer in a major pivot to outsourcing. Peloton also said it would suspend operations at its Tonic Fitness Technology facility through the end of 2022.