Pandemic darling Peloton is scrapping its manufacturing operations as part of the struggling at-home exercise company’s massive cost-cutting effort, the firm said Tuesday.

The stationary bike and treadmill maker, which had rushed to expand its manufacturing capabilities during the pandemic only to watch demand fall off a cliff, will outsource all of its manufacturing to longtime Taiwan partner Rexon Industrial Corp.

 “Today we take another significant step in simplifying our supply chain and variablizing our cost structure – a key priority for us,” said chief executive Barry McCarthy in a statement. “We believe that this along with other initiatives will enable us to continue reducing the cash burden on the business and increase our flexibility.”

Peloton’s shares rose 3.7% on the news to $9.25 — still a fraction of its pandemic highs when the stock hit $162.

McCarthy had conceded during an earnings call in May that the company is “thinly capitalized for a business of our scale.” 

The former Spotify and Netflix executive succeeded Peloton co-founder and former CEO John Foley in February and has since axed a massive $400 million manufacturing facility in Ohio that was supposed to handle orders that never materialized. 

As part of the Rexon outsourcing arrangement, the New York-based firm will cut around 570 jobs at its Tonic Fitness Technology unit, the Taiwan-based firm bought by Peloton in 2019 for $47.4 million, according to a source familiar with the matter.

McCarthy  has been on a cost-cutting mission since stepping into the CEO role after Foley was asked to step down.

He chopped about 20% of corporate jobs — 2,800 — and slashed the price of its equipment in an effort to spark sales. At the same time, he increased the monthly price of Peloton’s subscriptions to $44 from $39.