Peloton’s plan to build the company’s first U.S. factory in the Toledo area has been scrapped, and the company’s CEO is stepping down, the company announced in a news release.
Peloton also announced it was cutting 2,800 jobs, with the bulk of those coming at its headquarters in New York City. The announcements are part of a cost-saving effort the company expects will save around $800 million.
Peloton Interactive announced plans to build its first U.S. factory in Ohio, creating more than 2,000 jobs and investing more than $400 million in the state-of-the-art factory.
The new facility, in Troy Township between Toledo and Bowling Green, will be named Peloton Output Park and will produce Peloton Bike, Bike+ and Peloton Tread starting in 2023. It will employee 2,174 people and generate $138 million in new payroll.
The state approved a 2.301%, 15-year job creation tax credit for the company.