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Peloton to Cut 800 Jobs, Hike Prices and Shut Stores in Sweeping Overhaul
Peloton to Cut 800 Jobs, Hike Prices and Shut Stores in Sweeping Overhaul
Mark Gurman
Fri, August 12, 2022 at 12:42 PM
(Bloomberg) -- Peloton Interactive Inc. will embark on a sweeping overhaul that includes cutting nearly 800 jobs, raising prices for its Bike+ and Tread machines, and outsourcing functions such as equipment deliveries and customer service to outside companies.
The changes, which the company disclosed Friday in a memo to employees, also includes gradually closing many of its retail showrooms — a process that will get underway next year. It’s the most wide-ranging shake-up yet under Chief Executive Officer Barry McCarthy, a tech veteran who took the helm in February.
Peloton is hoping to turn around a business that had thrived during the early days of the pandemic but suffered a punishing slowdown in the past year. Sales are declining, losses are mounting, and the company’s stock price was down nearly 90% over the past 12 months. The latest moves are an attempt to reinvigorate sales, boost efficiency and restore some of Peloton’s former cachet.
{snip}
In its third known set of layoffs this year, the company will fire 784 employees across its distribution and customer service teams. Peloton will stop using in-house employees and vans to deliver equipment and shutter 16 warehouses across North America. Instead, it will rely on providers of third-party logistics, or 3PL, to set up bikes and treadmills at customer homes.
{snip}
Mark Gurman
Fri, August 12, 2022 at 12:42 PM
(Bloomberg) -- Peloton Interactive Inc. will embark on a sweeping overhaul that includes cutting nearly 800 jobs, raising prices for its Bike+ and Tread machines, and outsourcing functions such as equipment deliveries and customer service to outside companies.
The changes, which the company disclosed Friday in a memo to employees, also includes gradually closing many of its retail showrooms — a process that will get underway next year. It’s the most wide-ranging shake-up yet under Chief Executive Officer Barry McCarthy, a tech veteran who took the helm in February.
Peloton is hoping to turn around a business that had thrived during the early days of the pandemic but suffered a punishing slowdown in the past year. Sales are declining, losses are mounting, and the company’s stock price was down nearly 90% over the past 12 months. The latest moves are an attempt to reinvigorate sales, boost efficiency and restore some of Peloton’s former cachet.
{snip}
In its third known set of layoffs this year, the company will fire 784 employees across its distribution and customer service teams. Peloton will stop using in-house employees and vans to deliver equipment and shutter 16 warehouses across North America. Instead, it will rely on providers of third-party logistics, or 3PL, to set up bikes and treadmills at customer homes.
{snip}
4 replies
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