Peloton says it will cut roughly 780 jobs, close a significant number of its retail stores, and raise prices on some equipment beginning in 2023.
. But under then-CEO and Peloton founder John Foley, demand began to slow almost as quickly as it shot up, as people started going out again.
“The shift of our final mile delivery to 3PLs 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,” McCarthy wrote in a memo to employees seen by CNBC. Peloton, which had just lowered the prices for its products earlier this year, is raising the price of its Bike+ by $500 to $2,495 in the United States. The price of its Tread machine is going up by $800 to $3,495. The price of Peloton’s original Bike and its strength-training product known as Guide will remain unchanged.
Under McCarthy, who took the reins from Foley in February, the business has focused on ways to grow subscription revenue over hardware sales. Earlier this year, for example, Peloton raised the price of its all-access subscription plan in the United States to $44 per month from $39.
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