Peloton has pulled the plug on a planned $400 million factory in Ohio as it scrambles to cut costs due to sagging demand for its bikes and treadmills, the company confirmed as part of its turnaround plan this week. The embattled fitness brand said it is winding down the development of its Output Park (POP) manufacturing plan including its centerpiece manufacturing plant in Luckey, Ohio, near Troy Township.
The decision to cancel the plan marked a significant about-face for Peloton, which began construction just last year on what would have been its first factory. As reported by The Post, previously delayed the factory’s planned opening from 2023 to 2024 due to a backlog of inventory. said its decision to cancel the factory would result in $60 million in restructuring capital expenditures.
Peloton shares surged in trading Tuesday after unveiled sweeping changes to its operations. Embattled co-founder and CEO John Foley exited his role and will become executive chairman. The company is cutting about 20% of its corporate workforce, or roughly 2,800 jobs though the layoffs will not impact its fitness instructors, who reportedly earn up to $500,000 per year. Peloton workers affected by the layoffs were offered a year of free fitness classes, as well as cash severance and other measures meant to soften the career blow.