Peloton is changing things up once more. Prices are increasing and a set of layoffs are underway.
In addition to the layoffs, the company also announced it would raise prices on some of its equipment. The price of the Peloton Tread will go up by $800, while the high-end Bike+ will get a $500 price bump in the US.
The company will implement price increases in other parts of the world as well, and Peloton will begin closing many of its retail showrooms next year.
Peloton Prices
Peloton's products are going to receive another price increase. Peloton is going back and raising the prices of two of its most popular pieces of exercise equipment. In the United States, the Peloton Bike+ price will increase from $1,995 to $2,495.
On the other hand, the Tread will cost more than it did before April, when Peloton lowered prices in an effort to concentrate more on subscription revenue. In the United States, Peloton The tread price will go up to $3,495, an increase of $800.
The increase in the price of the equipment will not just affect the country but also buyers from countries such as Australia, the United Kingdom, Canada, and Germany.
However, the company is not including the original Bike or the Peloton Guide system with the price increase.
According to Engadget, Peloton CEO Barry McCarthy stated that raising prices represents a return to the company's previous positioning because initially cutting them had a negative effect on at least how consumers perceived the brand.
McCarthy added, "I probably wouldn't have messed with the prices at all if I had been confronted with different inventory states back when we lowered the pricing."
Peloton Layoffs
Peloton is cutting jobs once again as it takes measures to revive its business. Peloton plans to lay off approximately 800 people from its distribution and customer service departments.
This is the third round of layoffs that Peloton has implemented this year. In February, the company eliminated 2,800 jobs, and in March, approximately 570 employees in Taiwan were let go.
Peloton announced in a memo sent by Barry McCarthy that the company would be closing its in-house logistics division, which would result in the elimination of 784 roles on the company's customer support and distribution teams.
From this point forward, it will instead rely on third-party businesses to supply and set up the equipment in the homes of their consumers.
Peloton's Management
Peloton's adjustments were implemented approximately six months after Barry McCarthy took over as CEO in the midst of the company's downward spiral.
Peloton, which had once been a star of the epidemic period and had a market valuation of $50 billion, was caught off guard when people's interest in going out began to decline.
The company stated that the decisions they made were not taken lightly. Peloton is able to continue to define and dominate the worldwide Connected Fitness market by implementing these changes, which allow the company to become more efficient, cost-effective, and adaptable.
According to Business Insider, McCarthy stated, "as we face economic uncertainty in the global macroeconomic outlook, we will continue to analyze our workforce and expenditures."
In addition, they stated that these changes are made in hopes of progressing their strategic plan and better positioning the business for long-term success.
