BREEK: Peloton will outsource all bike manufacturing to Taiwanese firm as part of rescue mission to turn around the struggling business
Exercise tech firm Peloton will outsource manufacturing to a Taiwanese company to try and save the ailing business.
The company has announced its bikes and treadmills will be made by Rexon in an attempt to simplify the business and reduce costs for the beleaguered firm.
Peloton had previously been manufacturing several of its products at its own manufacturing plant before splitting it between that and partners before today’s news.
Peloton’s Chief Supply Chain Officer Andrew Rendich told Bloomberg News in an interview. ‘We are going back to nothing but partnered manufacturing,’ hy het gesê. ‘It allows us to ramp up and ramp down based on capacity and demand.’
Former Peloton CEO John Foley (op die foto) was embroiled in several scandals which have saw the company’s stock price collapse before his departure
Peloton has seen its stock price drop a staggering 93 persent in die laaste 12 maande
Peloton has seen its stock price drop a staggering 93 persent in die laaste 12 maande.
The company has seen several scandals which have taken it from trading around $120 last July to just $9 vandag.
In the first months of the pandemic, the surge in demand for home exercise equipment made Peloton into a stock market darling.
The company assumed its growth would continue even when gyms and leisure centres reopened – but this was proven to be wishful thinking.
As the world has been reopening from lockdowns, growth slowed before myriad scandals caused the valuation to crash.
In Maart 2021, a child was killed in an accident involving Peloton’s $4,300 Tread+ treadmill, according to a letter that was sent by the company’s CEO to its customers.
A letter by then-CEO John Foley reiterating safety advice was addressed to owners of Tread+ was shared on Pelo Buddy, which bills itself as a site dedicated to ‘unofficial tips, stilering & guide to your new Peloton’.
A child was killed in an accident involving Peloton’s Tread+ treadmill (op die foto)
Peloton co-founder and then-CEO John Foley shared news of the fatality in a letter addressed to owners of Tread+
‘While we are aware of only a small handful of incidents involving the Tread+ where children have been hurt, each one is devastating to all of us at Peloton, and our hearts go out to the families involved,’ Foley wrote.
The child’s death led to reports of several more injuries from Peloton equipment and class action lawsuits were filed.
In November, Peloton reported sales of its products fell by 17 percent for the most recent quarter, with the smallest gain in subscribers since going public in September 2019.
That saw Peloton’s market cap tumble by $8 miljard, and John Foley lose his billionaire status.
One of the more bizarre incidents in Peloton’s chaotic year came in December when Meneer Groot – played by Chris Noth – died of a heart attack after using a Peloton in the Sex and the City reboot And Just Like That.
Shares continued to drop and days later, Peloton is hailed for producing an advert featuring the revived character joking about the exercise bike but it is forced to pull the hailed commercial after Noth is hit by multiple claims of sexual assault, wat hy ontken.
Firm hit by fresh scandal after John Foley hosts lavish Christmas party for select employees, after annual bash was scrapped for rank-and-file staff.
New CEO Barry McCarthy (links) told staff in an email that Foley won’t be ‘scaling back his involvement with Peloton’
Foley maintains an active role in running the company after stepping down as CEO, the company’s new chief executive has said in a leaked memo.
Foley resigned as CEO but appointed himself executive chairman, and new CEO Barry McCarthy told staff in an email that Foley won’t be ‘scaling back his involvement with Peloton,’ berig die New York Post.
‘I plan on leveraging every ounce of John’s superpowers as a product, inhoud, and marketing visionary to help make Peloton a success as my partner,’ McCarthy wrote in the memo.
McCarthy’s email seems to clarify that Foley will still have an active hand at the company as executive chair, an outcome that activist investors who had pushed for Foley’s ouster feared, blaming him for the company’s valuation tanking nearly 80 percent in the past year.
Peloton on Tuesday announced sweeping restructuring moves, including global layoffs of 2,800 werknemers, 20 percent of the company’s workforce.
Amid the flurry of cost-cutting moves, the company said it is shutting down plans for a $400 million factory in Ohio – which precipitated the move to fully partnered manufacturing.
Peloton’s 12 months of disasters
Maart 2021: Peloton warns parents to keep children away from its Tread+ treadmills after a six year old child is killed after being pulled underneath one of them
Mei 2021: Peloton recalls the running machines after reports of at least 72 other injuries emerge. Class action lawsuits against the company are filed
Junie 2021: Firm is accused of greed after disabling ‘Just Run’ feature on Tread+ which lets users run for free, instead forcing them to pay a $39 om met die fiktiewe ‘House of Haedong’ te werk. Brought the free option back after an outcry
Augustus 2021: Peloton slashes cost of its entry-level bike by $400 as revenue growth slows
November 2021: Peloton reports sales of its products fell by 17 percent for the most recent quarter, with the smallest gain in subscribers since going public in September 2019. That saw Peloton’s market cap tumble by $8 miljard, and John Foley lose his billionaire status
Desember 2021: Meneer Groot – played by Chris Noth – dies of a heart attack after using a Peloton in the Sex and the City reboot And Just Like That. Shares continue to drop. Dae later, Peloton is hailed for producing an advert featuring the revived character joking about the exercise bike. But it is forced to pull the hailed commercial after Noth is hit by multiple claims of sexual assault, wat hy ontken
Firm hit by fresh scandal after John Foley hosts lavish Christmas party for select employees, after annual bash was scrapped for rank-and-file staff
Chris Noth, who plays Mr Big in Sex and the City, dies from a heart attack after using his Peloton
Januarie 2022: Leaked audio reveals plans to fire 41% of sales and marketing teams. Stock price tumbles further after it emerged production of bikes and treadmills would be slowed due to sinking demand.
Calls for Foley to be fired emerge.
The PR gets even worse as another TV character is almost killed off from a heart attack after a Peloton session. Showtime’s popular series Billions used the bikes to give Mike Wagner, played by David Costabile, a scare in the season six premiere. He survives, and declared he is not going to die ‘like Mr Big’
Mike Wagner, played by David Costabile, is seen in the Season 6 premiere of Showtime’s Billions having a heart attack after riding a Peloton bike