A Peloton store in Walnut Creek, California, U.S., on Monday, Feb. 7, 2022. Peloton Interactive Inc. is scheduled to release earnings figures on February 8.
Photographer: David Paul Morris/Bloomberg via Getty Images Peloton is laying off 784 employees as the fitness giant looks to cut costs, improve efficiency and create positive cash flow, according to a Friday memo from chief executive officer Barry McCarthy.
He emphasized that the company would continue to recruit top talent in key areas of need, such as software engineering. In addition, the company has announced it will raise prices on its Bike+ and Tread products, significantly reduce its North American retail footprint and eliminate its final mile distribution network.According to McCarthy, the price of the Peloton Bike+ in the United States will increase by $500 to $2,495, and the price of the Peloton Tread will increase by $800 to $3,495.
Meanwhile, the shift from its final mile delivery to its third party logistics partnerships will reduce Peloton's per-product delivery costs by up to 50%.A Peloton store in Walnut Creek, California, U.S., on Monday, Feb.