Peloton (NASDAQ: PTON) has had a rough year amid supply chain disruptions, employee shortages, and the overall economy. After having laid off 2,800 employees since February, CEO Barry McCarthy announced that an additional 784 jobs would also be eliminated in its third round of layoffs, according to Bloomberg. Furthermore, beginning in 2023, the company will be increasing its prices and closing retail showrooms.
In a statement, Peloton spokesperson Ben Boyd confirmed the news, writing: “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. The moves we made include, the implementation of more strategic pricing; the elimination of our North America final mile distribution network and expansion of our third-party logistics (3PL) partnerships; the reduction of our North America Member Support team; and the signal of our intent to significantly reduce our North America retail footprint. Any decision we make that impacts team members is not taken lightly, but these moves enable Peloton to become more efficient, cost-effective, and agile as we continue to define and lead the global Connected Fitness category.”
Following the ease in covid lockdowns and as people returned to gyms, the exercise equipment company has struggled to maintain its previously unmanageable growth. Furthermore, bike and subscription sales have remained stagnant as the company now has an excess of inventory and declining demand.