Peloton is preparing to raise prices, lay off 800 staff, and close locations
When Peloton CEO Barry McCarthy came over in February, the firm had let off 2,800 people, so he had his work cut out for him. Six months later, McCarthy has written a note to employees informing them that the business wants to cut an additional 784 positions in the third wave of layoffs. Peloton will also raise the pricing of the Bike Plus and Tread, as well as close retail showrooms beginning in 2023.
The layoffs and plans to close retail showrooms are part of Peloton’s rigorous reorganization plans after a catastrophic year. Peloton terminated over 600 positions in Taiwan last month as part of a strategy to minimize in-house production. It also stated in February that it was canceling plans for a $400 million facility in Ohio. Meanwhile, McCarthy said that, although the firm is laying off employees on its delivery and customer service teams, it is aggressively recruiting for positions on its software engineering team. McCarthy also said that the firm would minimize its retail base beginning next year in order to boost its e-commerce presence.