Peloton told employees Friday that it is slashing roughly 780 jobs, closing a significant number of its retail stores and hiking the prices on some of its equipment in a bid to cut costs and become profitable.
The company didn’t specify how many its 86 retail locations it plans to shutter, but said an “aggressive” reduction will begin in 2023.
Peloton said it will be exiting last-mile logistics by closing its remaining warehouses and shifting delivery work to third-party providers, resulting in a portion of the job cuts. It is also cutting a number of positions in its in-house support team, which are mainly located in Tempe, Arizona, and Plano, Texas, and instead will rely on third parties.
“The shift of our final mile delivery to 3PLs will reduce our per-product delivery costs by up to 50% and will enable us to meet our delivery commitments in the most cost-efficient way…