Peloton to Outsource
Peloton, the company known for its workout bikes, is hoping a new plan to save cash works out as it struggles to stay afloat. The company will stop making its own equipment to cut costs.
Peloton factories will shut down which means about 600 people will lose their jobs, according to Bloomberg News.
A company in Taiwan will pick up production, specifically Peloton's bikes and treadmills. Touchscreens and an upcoming rowing machine will also be outsourced.
It's a huge shift from the boom the company saw during the pandemic. Among the factors hurting sales: product recalls and competition from upstarts selling much cheaper bikes.
Peloton's stock is down about 95 percent from the all-time high it reached in late 2020.
