Could things possibly get worse for Peloton?
The struggling fitness company told employees Friday that it’s cutting about 780 more jobs, closing some of its 86 retail stores and hiking prices as it seeks elusive profits.
Peloton didn’t say how many stores it will close, but acknowledged that cost-cutting moves beginning next year will be “aggressive.”
Among those moves will be closing all remaining warehouses and outsourcing delivery of exercise equipment to third parties.
CEO Barry McCarthy said in a memo to employees that handing off delivery duties “will reduce our per-product delivery costs by up to 50% and will enable us to meet our delivery commitments in the most cost-efficient way possible.”
“These expanded partnerships mean we can ensure we have the ability to scale up and down as volume fluctuates,” he said.
Peloton said in a statement that the price of its Bike+ will rise by $500 in the United States. Its Tread machine will be $800 more expensive.
The company has been hammered by the switch from at-home exercise to a return to gyms. Its subscription model also is less palatable for many consumers amid the highest inflation in 40 years.
Peloton has already slashed thousands of jobs. Its most recent quarterly loss was $757 million, up significantly from a year-ago loss of $8.6 million.
“Overall, I continue to be optimistic about the future of Peloton,” McCarthy told underlings.
Dare to dream.