Steelers Add Evolv’s AI-Powered Security Screening to Stadium & More Latest News Here – Up Jobs

Peloton is laying off close to 780 employees in an overhaul that will mostly affect the company’s delivery workforce. 

In an internal staff memo sent Friday, CEO Barry McCarthy wrote that the company is also shutting down a substantial amount of its 86 retail stores beginning in 2023 and raising the prices immediately on its at-home fitness products to ensure better profitability. After slashing prices earlier this year, Peloton’s Bike+ will increase by $500, to $2,495 and Peloton’s Tread will increase by $800, to $3,495. The prices of Bike v1 and the AI-enabled strength training Peloton Guide will remain the same. 

By also closing its remaining warehouses, Peloton will be shifting its “final mile delivery” to third-party providers, leading to the current layoffs. McCarthy estimated that alone will reduce “per-product delivery costs by up to 50%”

That decision is a marked turnabout from 15 months ago when Peloton, under founder and former CEO John Foley, announced it would spend $400 million to build its first manufacturing plant in the U.S. Construction of the 200-acre complex was scheduled to begin in 2023, designed to produce Peloton’s cycles and treadmill machines and contain office space and a fitness center for employees. At the time, Peloton expected to add over 2,000 jobs in northern Ohio and capitalize on renewable energy sources to power the factory. Those plans have undoubtedly changed under McCarthy.    

Peloton is considered a leader in connected fitness and had recently branched off to wearable technology.  As of the end of this March, Peloton’s losses had risen to $757.1 million compared to $8.6 million the year before, while revenue dipped to $964.3 million from $1.26 billion. Tonal, an at-home AI-powered strength training machine and competitor to Peloton, cut 35% of its workforce last month.