You may soon have to assemble your own Peloton

Photo by Amelia Holowaty Krales / The Verge

After a third round of layoffs, Peloton is considering redesigning its bikes so that users can assemble them on their own. Barry McCarthy is considering a plan that would allow users of the Peloton app to view workouts on third-party machines. McCarthy said he hopes the long-awaited rower from Peloton will debut sometime this holiday season. The company hasn't completely given up on the Tread Plus.

McCarthy commented on the company's Q3 earnings in May. In the future, Peloton equipment would be designed to arrive at a customer's home in one piece, if he had his way. Delivery of the treadmills and bikes is done in separate pieces, with a crew that comes to your home to build them for you. The service used to be free but at the end of January it was charged an additional fee.

Part of the restructuring plan is to reduce the company's costs and improve cash flow. More than 500 jobs were being cut at Peloton due to last-mile deliveries. The company said it was shuttering retail locations and raising the price of its products. The company can simply ship devices via FedEx if it makes it so that customers can assemble their own equipment.

Photo by Amelia Holowaty Krales / The Verge

McCarthy has shared novel ideas on how to turn around Peloton's financial fortunes since he took over. Money saved from Friday's cost-cutting measures will be put back into the business. McCarthy said that the app received little to no promotion in the past. It's in line with the CEO's plan to allow Peloton users to stream classes on third-party workout machines. The company may change the app's subscription strategy to a "freemium" model where features aren't locked behind a paywall

Apple currently does not require the use of an Apple- branded exercise machine for its Fitness Plus service. People can use their own devices to stream fitness classes at their local gym. The main difference is that Apple still requires users to own a minimum of an Apple watch and phone.

It seems that hardware still has a role to play in the business. The company is planning on launching a rower this holiday season. The rower was the worst kept secret in connected fitness until it was confirmed earlier this year.

Image: Peloton

McCarthy said that the company was hoping to bring back the Tread Plus, which was recalled last year after several injuries and the death of a small child. The Tread was approved for sale at the end of the year. The Tread Plus isn't in circulation anymore. The high-end treadmill cost the company $18 million in the third quarter. The government needs to clear the way for the relaunch of the Tread Plus. It is possible that it is not something that Peloton is banking on. On Friday, part of the rationale for hiking up the price of the "affordable" Tread by $800 was to position it as a superior device.

The One Peloton Club lease pilot may be about to be expanded. The cost of the bike and classes are included in the monthly fee. McCarthy said in May that 53 percent of the people who signed up for the program were households with incomes under $100,000.

The Q4 2022 earnings call is expected to be held later this month on August 25th, and we will likely learn more about which plans will stick then. Wall Street investors seem to be skeptical of Peloton's restructuring efforts.