In order to cut costs and end a flood of red ink, Peloton is planning to raise prices on key products, close stores and lay off hundreds of workers according to a memo from CEO Barry McCarthy.
The store was boarded up in June 2020.
The price of the Bike+, its higher-end stationary bike, will increase by 25% to $2,495 and the price of the treadmill will increase by 30% to $3,490 according to the memo.
McCarthy doesn't expect any storefronts to be closed by the end of the year, but the company plans to reduce its retail footprint.
More than 700 workers will be affected by the firing of delivery and customer service employees.
In 30 minutes, the shares of Peloton rose 7.6% to $13.08
Forbes did not get a response from Peloton.
There was a 92 percent success rate. Despite Friday's rally, the stock is still down from its January high.
If Peloton is ever going to become cash flow positive, these changes are necessary. There is cash. It's life if you have oxygen. We must become self-sufficient.
There is a breaking news story that will be updated.
The CEO of the company is thinly capitalized, according toForbes.
It won't make its own bikes anymore to cut costs.
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