Peloton raises prices on its Bike+ and Tread fitness gear again

It’s been a brutal year To get back on track, the company is enacting more major changes. On the consumer side, Peloton is reversing price cuts on two of its core fitness equipment. Bike+ prices in the US recovered from $1,995 to $2,495.

Meanwhile, Tread will be more expensive than Peloton was before Focus on subscription revenue. The Tread was up $800 to $3,495 in the US. Earlier this year, the machine was priced at $2,895.The company is also increase price Products in Canada, UK, Germany and Australia.

Chief executive Barry McCarthy told us that lowering prices in the first place “at least reduces brand awareness” “So it’s a throwback to historical positioning.” He added, “If I had a different stock status when I dropped the price, I probably wouldn’t have screwed up the price at all.” The company doesn’t change the price of the original bike or system temporarily.

Meanwhile, Peloton will cut an additional 784 jobs across its distribution and customer service teams in the third round of publicly disclosed layoffs this year. It will close 16 warehouses in North America and use only third-party companies for deliveries and installations in people’s homes. Closing internal distribution and closing warehouses will result in the loss of 532 jobs.

The company will also use a third party to expand its customer support team, which will be cut by roughly half and lose 252 positions. The layoffs follow Peloton’s layoff of about 570 employees in Taiwan last month. . February, Peloton And hired McCarthy as the new CEO. However, the company still plans to hire in certain areas, such as software development.

On top of that, Peloton plans to begin closing its retail showrooms next year. Although it operates 86 locations in the U.S. and Canada, it remains to be seen how many will be closed. The company will ask office workers to return to its offices from November.

McCarthy told employees in a memo (provided ) changes are necessary to help make the company cash flow positive again. “We must get our revenue to stop shrinking and start growing again,” he wrote. “Cash is oxygen. Oxygen is life.”

Peloton The first three months of 2022 were driven by declining revenue and soaring operating costs. It saw a huge boom in business shortly after the COVID-19 pandemic hit.However, it believes the demand will continue after the planet reopens and too much fitness gear was previously made earlier this year.

We will soon have a clearer picture of the current state of the business. Peloton will release earnings results for its April-June quarter (the fourth quarter of its fiscal year) on August 25.

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