Peloton is preparing to raise prices, lay off 800 staff, and close locations

Peloton is preparing to raise prices, lay off 800 staff, and close locations

The money saved by today’s actions, according to the message, will be used for more research and development as well as marketing. This is consistent with McCarthy’s intentions from last quarter. For example, at the time, he stated that Peloton had spent almost little money promoting their standalone app membership. The business has already corrected this with an ad advertising the standalone app that features actor Christopher Meloni working out naked. McCarthy has been keen on repositioning Peloton as a connected fitness brand, rather than “that Bike business.” So far, this has included planned plans to change the company’s subscription model and create an app store. McCarthy’s has just piloted a concept for leasing the company’s bikes.

McCarthy closed the message optimistic about Peloton’s potential, however, investors haven’t been impressed by Peloton’s reorganization plans in his first six months. Peloton’s stock has dropped about 90% in the last year. Nonetheless, investors seemed to be responding positively to today’s announcement, with shares gaining 8.2 percent. Peloton is slated to announce its Q4 profits later this month, which will provide a better sense of how McCarthy’s restructuring tactics have performed.