Peloton (PTON) to Cut More Jobs, Reduce Equipment Prices - Bloomberg
- Wall Street ends sharply higher as Treasury yields dip
- Apple Falls 4% on Report It Will Not Ramp Up iPhone 14 Production, Analyst Not Surprised
- Biogen (BIIB) Surges After 'Best-Case' Alzheimer's Drug Trial Results; Stock Earns Several Upgrades
- Europe Stock Outflows 'Worse Than During COVID Panic' - Citi
- Oil up 4% as Bulls Storm Back In on Hurricane, Crude Draw and Dollar Drop
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
Peloton (NASDAQ: PTON) will cut a further 800 jobs, close stores, raise prices for its Bike+ and Tread machines, and outsource services such as equipment deliveries and customer service, according to a report by Bloomberg on Friday.
The company, which reduced the prices for its fitness equipment earlier this year, reportedly announced the sweeping overhaul in a memo to employees, which Bloomberg has seen.
The shake-up, which is the most wide-ranging since Chief Executive Officer Barry McCarthy joined the company in February, will get underway next year, according to the report.
However, it's not surprising that the company is struggling as demand continues to decline following the Covid pandemic boom.
Peloton has experienced a significant slowdown in the past year, with its shares down over 87% in the last 12 months. However, they rallied Friday, trading 13% above Thursday's close.
The latest overhaul is an attempt to turn around declining sales and boost efficiency.
Bloomberg revealed that McCarthy said in his memo that the company has to "make our revenues stop shrinking and start growing again."
By Sam Boughedda
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- 3 Rumors Flying Around Wall Street Today
- Autodesk (ADSK) Appoints Dara Treseder as Chief Marketing Officer
- Cambridge Bancorp (CATC) Announces Receipt of Regulatory Approvals to Merge with Northmark Bank and Anticipated Closing Date
Create E-mail Alert Related CategoriesCorporate News, Hot List, Rumors
Related EntitiesRaising Prices
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!