(Reuters) -Exercise equipment maker Peloton Interactive said on Tuesday it will cease to manufacture its bike and tread products in-house and hire a third-party manufacturer in an effort to simplify its supply chain and optimize its cost structure.
Shares of Peloton were down 1.8% premarket after the company said Taiwan-based Rexon Industrial Corp will become the primary manufacturer of the hardware for Peloton’s bike and tread product lines.
Peloton will be suspending operations at its Tonic Fitness Technology Inc facility through the remainder of 2022, the company said.
(Reporting by Kannaki Deka in Bengaluru; Editing by Anil D’Silva and Shinjini Ganguli)
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