Peloton cuts jobs and closes significant numbers of stores

Peloton cuts jobs and closes significant numbers of stores

(Finance) – Pelotona US company that sells multi-thousand-dollar exercise bikes, treadmills and remote fitness courses, is cutting around 780 jobs, closing a significant number of stores retailing and raising the prices of some of its equipment. This was communicated by management in a message to employees. The new interventions, in the wake of similar operations in recent months, are aimed at reducing costs and making the company profitable.

Among the other measures announced, there is the decision of no longer manage the logistics of the last mile in person, closing the remaining warehouses. “Switching last mile delivery to third parties will reduce our delivery costs per product by up to 50% and enable us to meet our delivery commitments as efficiently as possible,” wrote CEO Barry McCarthy. according to the memo viewed by CNBC.

In early July, the company announced it was staying abandoning all production activities on its own and expanding its relationship with leading Taiwanese manufacturer Rexon Industrial.

Excellent performance of Peloton Interactivewhich stands at 13.28 with an increase of 11.46%. At the operational level, the session is expected to continue under the banner of bull with resistance seen at 13.82 and later at 15.37. Support at 12.27.

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