Peloton park site will be sold, company says Week of 2/21/2022

Senior management at Peloton Interactive, Inc. plans to sell the building and land at Peloton Output Park in Troy Township once external construction is complete, the company has advised the Wood County Economic Development Commission.
The maker of interactive exercise bikes and equipment announced last week it had decided to ”wind down our Peloton Output Park plan” as the company undergoes a major restructuring.
The move comes less than a year after it announced plans to invest about $400 million in the 200-acre site where it would manufacture the Peloton Bike, Bike+ and Peloton Tread. A groundbreaking was held in August 2021 and production was slated to start in 2023.
“Once we finish the external construction of Peloton Output Park, we will sell both the building and land. We are forever thankful to Wood County, Troy Township, JobsOhio, the Ohio Development Services Agency and the Regional Growth Partnership for welcoming Peloton to the community and for their invaluable partnership,” the company statement says. “While we won’t be able to ultimately occupy the property, overall we not only had the opportunity to highlight the talent and resources Troy Township offers, but we also invested approximately $100 million in the area. We are grateful to be a part of the community through our work with Local Initiatives Support Coalition and the Wayman D. Palmer Community YMCA in Toledo; in transforming the YMCA exercise room into an inviting, well-equipped center for wellness by installing Peloton and Precor connected fitness equipment.”
The company expected to add more than 2,000 jobs when the Troy Township project was up and running.
Instead of utilizing the Troy Township facility, the company said it will rely on its third-party manufacturing suppliers to meet any growth over the next few years.
In a Feb. 8 message to Peloton employees, John Foley, co-founder and recently-named executive chair, said the company has been re-evaluating its costs to position itself for a “post COVID landscape.”
“After careful review, we’ll be driving strategic initiatives across our global team that will help up focus on areas that are in need of adjustment, including implementing a comprehensive restructuring program,” his message says.
The re-structuring has also impacted the company’s warehousing infrastructure.
“We’ve also embarked on a significant realignment and reduction of our North American warehousing and first party logistics operations,” the message says. “During the pandemic we were forced to rapidly expand our warehouse infrastructure and last mile delivery teams, while also scaling our third party relationships. As our growth has moderated and returned to a more typical seasonal pattern, we’ve made the decision to significantly reduce our owned and operated warehousing and delivery footprint.”
In all, about 2,800 positions are being cut, the company said.