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Peloton Cuts 800 Jobs And Raises Prices As Sales Slump
Interactive fitness company Peloton (PTON) is cutting 800 jobs and raising the prices for its
stationary bikes and treadmills as it overhauls its business amid declining sales.
The New York City-based company also said that it plans to outsource functions such as
equipment deliveries and customer service going forward, and that it will close many of its retail
showrooms beginning next year.
The changes come as Peloton struggles with declining revenue and a stock price that's down
88% in the past 12 months.
Investors applauded the announced changes, sending Pelton's share price up 14% to $13.53
U.S. immediately after the alterations were made public.
Peloton said it's raising the price of its flagship Bike+ by $500 U.S. to $2,495 U.S. and its
treadmill by $800 U.S. to $3,495 U.S. The company is betting that the price increases will help
boost sales. During its fiscal third quarter, Peloton's revenue declined 24% from a year earlier.
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