peloton interactive inc on tuesday said it plans to exit all ownedmanufacturing operations as the maker of connected fitness equipment works to simplify its supply chain and reduce its cost structure the new york company said it will expand its relationship with taiwanese manufacturer rexon industrial corp which will become the primary maker of hardware for its bike and tread product lines peloton which plans to focus on technology and content also said it will suspend operations at its tonic fitness technology inc plant for the rest of the year the company acquired tonic one of its longtime taiwanbased bike manufacturing partners in october 2019 peloton which saw a surge in demand with the covid19 pandemic is grappling with reduced interest in its products as us consumers revert to prepandemic behavior the company in may reported its biggest quarterly loss as a public company and said it had raised 750 million to help sustain its business peloton has laid off hundreds of workers and is saddled with a glut of unsold inventory and has also pulled the plug on plans for a 400 million manufacturing plant in ohio and instead is working to sell the facility the company once worth around 50 billion now sports a market capitalization of less than 34 billion