Peloton is still experiencing financial issues this year and it is now trying a lot to get itself in shape. Back in April, the company made some price cuts to the Bike+ and the Thread but it has now reversed both of these with prices rising from $500 to $800.
The company increased its subscription costs in April 2022 too.
The Bike+ used to be $1,995, but has been increased to $2,495 in the US with the Tread going up from $2,895 to $3,495. Its the same situation here in the UK as well as Canada, Germany and Australia. Here in the UK, prices for the Bike+ rise by £150 to £1,995 and the Tread by £900, to £3,345.
However, this isn’t the only thing Peloton is doing to recover. The company is also going to layoff 784 meters of staff in areas of the business ranging from distribution to customer service. In addition, 16 warehouses in the US will also be closed.
In addition, Peloton will be closing some of its physical retail stores. The specific amount that will be shuttered remains to be seen, but the company currently has 86 throughout the US and Canada. In the UK, there are 25 stores.
Peloton CEO has said to employees through an internal memo that these changes are necessary to make the company profitable again as it is losing a lot of money. For example, Peloton lost $757.1 million between Jan 2022 and March 2022.