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Peloton Cutting Nearly 800 Jobs and Raising Prices
A connected fitness brand has made the most recent, significant improvements in an effort to recoup its losses.
As part of its most recent restructuring under CEO Barry McCarthy, connected fitness business Peloton is slashing close to 800 positions and hiking the cost of its products.
- Peloton is outsourcing customer assistance and the delivery of equipment.
- Reduced retail footprint in North America
- The business reported a Q3 loss of US$757.1m.
In February, as part of a comprehensive restructuring that included 2,800 job cutbacks as the business adjusted to decreasing demand following its record high, Peloton hired McCarthy, the former CFO of Spotify.
In the third round of layoffs this year, 784 workers from Peloton’s distribution and customer service teams will lose their employment. Last month, the corporation revealed plans to eliminate around 570 employees in Taiwan.
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The price of the Bike+ will rise by US$500 to US$2,495 and that of the Tread treadmill by US$800 to US$3,495 respectively. The former is a reversal; the Bike+’s pricing was US$2,495 before April’s price reductions. The cost of Tread has increased since four months ago.
Additionally, tasks like customer service and equipment delivery will be outsourced. As a result, Peloton will close 16 warehouses across North America and stop employing its own personnel and trucks to supply equipment.
In February, Peloton announced that it would contract out the manufacturing of its connected workout equipment.