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Peloton to cut jobs, shut stores and raise prices in company-wide revamp

Stock Markets Aug 13, 2022 06:30AM ET
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2/2 © Reuters. FILE PHOTO: A Peloton logo is seen on an exercise bike after the ringing of the opening bell for the company's IPO at the Nasdaq Market site in New York City, New York, U.S., September 26, 2019. REUTERS/Shannon Stapleton/File Photo 2/2
 
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By Kannaki Deka

(Reuters) -Peloton Interactive Inc said on Friday it would cut jobs, shut stores and raise prices on its exercise equipment including treadmills and top-end bikes as it undertakes a company-wide revamp to shore up its revenue and improve cash flow.

Shares of the company surged about 11% in afternoon trade after the company said in a memo it would cut about 800 jobs and reduce its retail presence in North America.

Under Chief Executive Officer Barry McCarthy, Peloton (NASDAQ:PTON) has implemented a slew of measures including cost cuts to steady its business as a pandemic-driven demand for its treadmills and exercise bikes quickly fizzles.

On Friday, the company outlined a plan to aggressively reduce its retail presence in the United States and eliminate a number of jobs in warehouses and customer support teams.

Shifting final mile delivery to third-party logistics providers will reduce per-product delivery costs by up to 50%, McCarthy said in the memo seen by Reuters.

The company is also raising prices of its Bike+ and Tread machines in five markets, including the United States and Canada. (https://

The company, which lowered the prices for its products earlier this year, said it would now raise prices by $500 to $2,495 on Bike+ and by $800 to $3,495 on Tread in the United States.

McCarthy, a former Netflix Inc (NASDAQ:NFLX) executive, said he was aiming to boost Peloton's software engineering team, terming it as "right investments" to drive growth.

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Peloton to cut jobs, shut stores and raise prices in company-wide revamp
 

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Comments (2)
Ethel Basset
Ethel Basset Aug 12, 2022 6:54PM ET
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Death spiral
Empire Destroyer
Empire Destroyer Aug 12, 2022 5:17PM ET
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People lose jobs, investors buy company stocks 🤣 rich gets richer, love it
 
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