The New York Post is reporting that Peloton will delay the opening of the Peloton Output Park, Peloton’s first U.S.-based production factory.
Announced back in May of 2021, the Peloton Output Park is based in Troy Township, located outside of Toledo, Ohio. It will reportedly cost $400 million to build and is expected to bring more than 2,000 jobs to the area. It was originally scheduled to open in 2023, but according to the New York Post’s reporting, this has been pushed back to 2024, which will save between $100 and $200 million for the 2022 fiscal year.
The New York Post cites sources close to Peloton, including a current employee. They report that Peloton has decreased their warehouse and delivery center hours to only 20 hours per week due to decreased demand.
Additionally, Peloton reportedly has approximately 500 days (well over one year’s) worth of Bikes and Treads in inventory. Prior to early 2020, their inventory would only last them a few months at a time. During the height of demand in 2020, Peloton reportedly had virtually no back-up inventory. This makes sense considering that Peloton struggled with long delivery wait times throughout the first year of the pandemic.
This reporting falls in line with the news CNBC broke earlier today that Peloton has placed a pause on production for Bike, Bike+, and Tread devices.
This has been an eventful week of Peloton company news. Earlier this week Peloton hired the consulting firm McKinsey to look at ways to cut costs, and is considering eliminating jobs and closing showrooms. These developments follow the news that Peloton is effectively increasing the price of Bike and Tread devices by ending free delivery and set-up.
Peloton’s Q2 2022 Earnings Call is scheduled for February 8.
You can read the full New York Post article here.
Want to be sure to never miss any Peloton news? Sign up for our newsletter and get all the latest Peloton updates & Peloton rumors sent directly to your inbox.
Leave a Reply