Peloton Bike Plus and Tread Prices Are Going Back Up
The maker of exercise equipment is also cutting more jobs.
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After cutting prices on some of its exercise equipment in April, Peloton is changing course and increasing the price of its Bike Plus and Tread treadmill. In a post on its site Friday, Peloton said that in the US the price of the Bike Plus will increase by $500 to $2,495, its cost before the April cuts. The price of the Tread will go up by $800 to $3,495, an increase over its price before the April cuts.
The changes come during a tumultuous few months for the maker of exercise equipment, which has been trying to rejuvenate its business after sales slumped as concern over the COVID-19 pandemic eased. In February, the company cut around 2,800 jobs globally and named Barry McCarthy, a former executive at Spotify and Netflix, as its new CEO. Last month, Peloton also said it would stop manufacturing its exercise bikes in house and would instead rely on a third-party partner.
On Friday, Peloton confirmed it's also cutting nearly 800 additional jobs and will begin closing many of its retail showrooms in North America, news that was reported earlier by Bloomberg. In a memo to employees, McCarthy said Peloton will be outsourcing many last-mile delivery and customer service roles to third-party companies.
"Peloton, today, took several steps to further advance our transformation strategy, better positioning the company for long term success as the largest, global Connected Fitness company," Peloton said in an emailed statement. "Unfortunately, these workforce shifts result in the departure of 784 employees from the company."
The company said the price of its original Peloton bike and new Peloton Guide will remain unchanged.