Peloton to cut nearly 800 jobs

Peloton has told its employees that it will be cutting staff, closing down retail locations and raising the price of some of its equipment.

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The company informed employees by email on Friday, Bloomberg reported.

CEO Barry McCarthy told employees that the company had lowered the price of the Bike, Bike + and Tread lines in April, but it will be raising the prices of the Bike+ by $500 to $2,495 and the Tread by $800 to $3,495.

McCarthy also told employees that the company will be “optimizing” its operations and workforce. Peloton is closing field ops warehouses in North America, which will result “in a significant reduction in our delivery workforce teams.”

That means that Peloton will not be providing the last-mile delivery it has in the past, The New York Times reported.

Staff with the member support team will also be cut, and the company will instead hire third-party partners to be able to “scale up and down as volume fluctuates,” according to Bloomberg.

Peloton will also be closing some of its 86 brick-and-mortar stores but didn’t say which ones or how many, the Times reported. The company said the reduction will be “aggressive” and will begin next year, but the timeline will depend on Peloton getting out of its leases for retail locations, CNBC reported.

BBC News reported that the job cuts will affect about 800 people.

Last month, Peloton said that it was hiring an overseas company to manufacture its exercise equipment. The company also laid off about 2,800 employees earlier this year, the Times reported.