Tech

Peloton raises the price of Bike+ and Tread exercise equipment again


It’s been a brutal year for and the company is making even bigger changes in an effort to get back on track. On the consumer front, Peloton is reversing price cuts on two of its core fitness devices. Bike+ will increase again from $1,995 to $2,495 in the US.

Meanwhile, Tread will be more expensive than before Peloton to focus on subscription revenue. Tread will raise $800 in the US to $3,495. At the beginning of this year, the machine was priced at $2,895. The company also price increase of products in Canada, the UK, Germany and Australia.

Lowering prices in the first place “at least improves brand awareness,” says CEO Barry McCarthy . “So this is a historical return.” He added, “I probably wouldn’t have been confused with pricing if I had been faced with different inventory positions when we lowered prices.” The Company does not change the price of the original Bicycle or system for now.

Meanwhile, in its third round of public layoffs this year, Peloton is cutting another 784 jobs across its distribution and customer service teams. It will close 16 warehouses in North America and use only third-party companies to deliver and set up equipment in people’s homes. The closure of the internal distribution system and the closure of warehouses will result in the loss of 532 jobs.

The company will also use third parties to augment its customer support team, which will be cut in half with the loss of 252 positions. Those cuts are on the roughly 570 employees Peloton laid off in Taiwan last month because of it . In February, Peloton and brought in 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 start closing its retail showrooms next year. It remains to be seen how many will close, although it operates 86 in the US and Canada. The company will require office workers to return to the office from November.

McCarthy told staff in a memo (provided ) that changes are needed to make the company’s cash flow more positive again. “We have to get our revenue to stop falling and start growing again,” he wrote. “Cash is oxygen. Oxygen is life.”

Peloton in the first three months of 2022 due to declining revenue and high operating costs. It saw a huge boom in business shortly after the COVID-19 pandemic began. However, they believe demand will continue after the planet reopens, and it has made too many units of exercise equipment before. this early year.

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

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