Peloton is pushing up its prices and cutting almost 800 jobs, its third round of firings in 2022.
The exercise company is going to increase its outsourcing for practices such as equipment deliveries and customer services to other companies. The company will also close 16 warehouses.
The closing of in-house deliveries, distribution, and warehouses will see Peloton cut 532 jobs, while 252 jobs will be removed from the company’s support teams, according to Bloomberg.
“Any decision we make that impacts team members is not taken lightly, but these moves enable Peloton to become more efficient, cost effective, and agile as we continue to define and lead the global Connected Fitness category,” a statement from Peloton read.
DEMOCRATS PREPARE TO PASS INFLATION REDUCTION ACT, SECURING BIG WIN FOR BIDEN
The price of the company’s Peloton Bike+ will increase from $1,995 to $2,495, and the price of the Peloton Tread will increase by $2,695 to $3,495. The prices were initially decreased in April to make the company’s equipment more accessible to new members, according to a Peloton press release.
Peloton is already using other companies, such as JB Hunt Transport Services and XPO Logistics, to handle the shipping of its products, and will now move its distribution to both companies. While the company has received some complaints in the past that the third-party delivery services were not on par with Peloton’s shipping, Peloton CEO Barry McCarthy stated that the company has “no choice but to make it work.”
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Friday’s announcement marked the latest setback for jobs at Peloton. The company announced in July it would remove about 570 jobs in Taiwan as a means to move away from the company manufacturing its own equipment. In February, Peloton fired almost 3,000 employees across its entire company.
