Tuesday Oct 04, 2022

Peloton announces 784 job cuts, $500 price hikes on equipment – Daily Mail

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CEO Barry McCarthy, a tech veteran who took over the company in February, said he hopes today’s decisions will ‘better position the company for long term success’

Peloton told employees Friday it’s slashing 784 jobs, increasing equipment prices, closing several retail locations and requiring all non-remote employees to return to the office by November 14.

The decision comes as the pandemic darling tries to claw back profits after a 90% loss of its share price upon gym reopenings early this year. 

CEO Barry McCarthy, a tech veteran who took over the company in February after a tumultuous end to former CEO John Foley’s time at the company, said he hopes today’s decisions will ‘better position the company for long term success.’

Foley stepped down amid a storm of controversies and declining share prices.

Most notably, his company-wide freezing of new hires and the canceling of a massive company holiday party due to the company’s tanking stock prices while he attended a lavish, invite-only party for some of his instructors at New York City’s Plaza Hotel.

Friday’s layoffs will come from the company’s distribution and customer service teams.

McCarthy also announced Peloton will stop using in-house employees and vans to deliver equipment, shuttering 16 North American warehouses. 

‘This has been a challenge,’ McCarthy wrote in the memo to the company Friday. ‘We won’t fix it overnight, but we have no choice but to make it work.’

Peloton said last month it would cut about 570 employees in Taiwan and nearly 3,000 employees in February.

Peloton’s layoffs, store closures and price increases comes as the pandemic darling tries to claw back profits after a 90% loss of its share price upon gym reopenings early this year

Pelton will raise the price of its flagship Bike+ (left) by $500 to $2,495 and its Tread treadmill (right) by $800 to $3,495

In regard to equipment, the company will raise the price of its flagship Bike+ by $500 to $2,495 and its Tread treadmill by $800 to $3,495.

The price cuts ‘cheapened at least the perception of the brand,’ McCarthy said. ‘So this is a return to historical positioning.’

Pelton also intends to undergo a ‘significant and aggressive reduction’ of its retail footprint across North America next year.

The company currently operates 86 stores across the US and Canada. 

It remains unknown how many will be shuttered as part of today’s plan for Peloton’s future.

One thing left out of today’s memo was the company’s bike rental program. 

Currently, several retail locations provide a service to rent a Peloton Bike+ for $89 per month, which covers both the bike and all access membership.

The company currently operates 86 stores across the US and Canada, but plans to close a It remains unknown how many will be shuttered as part of today’s plan for Peloton’s future

Peloton is making other changes, including a return to in-person work. 

Office employees will have to come in at least three days a week starting September 6, McCarthy said Friday. 

This type of return is in line with the approach used by other …….

Source: https://www.dailymail.co.uk/news/article-11106739/Motivation-moves-unemployment-Peloton-announces-800-job-cuts.html

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