by J.D. Davidson
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 is at an important juncture, and we are taking decisive steps” said John Foley, Peloton’s co-founder and newly appointed executive chair. “Our focus is on building on the already amazing Peloton Member experience, while optimizing our organization to deliver profitable growth.”
Construction already began on the Toledo plant, and Peloton said it plans to finish the building’s shell and sell it, along with land that surrounds it.
JobsOhio President and CEO J.P. Nauseef said the Peloton news was disappointing, but Peloton had not yet received any state incentives, which were performance-based.
“In the very near future, Wood County, Ohio, will boast a tremendous site that is ready for development and that will empower a company to move quickly to set up successful operations and create jobs for the dedicated and skilled workforce of Northwest Ohio,” Nauseef said. “Ohio is experiencing a once in a generation opportunity, and while we are disappointed in today’s news, we are optimistic that Ohio’s momentum is strong moving forward!”
Peloton announced Ohio as the site for its first U.S. factory in May, committing to a $400 million investment that was expected to create more than 2,000 jobs.
The facility was scheduled to open in 2023, and the state approved a 2.301%, 15-year job creation tax credit as an incentive.
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J.D. Davidson is a veteran journalist with more than 30 years of experience in newspapers in Ohio, Georgia, Alabama and Texas. He has served as a reporter, editor, managing editor and publisher. He is a regional editor for The Center Square.
Photo “Peloton Bike” by Peloton.
