Peloton says it’s slashing 780 jobs, closing stores and hiking prices of fitness equipment

Exercise equipment maker Peloton Interactive Inc (NASDAQ: PTON) on Friday said it is cutting around 780 jobs, closing a significant number of its retail stores and hiking the prices of some of its equipment in a bid to cut costs and become profitable.In a letter to the employees, Peloton CEO Barry McCarthy said the company is exiting from last-mile logistics by closing its remaining warehouses and shifting delivery work to third-party providers like XPO Logistics, resulting in a portion of the job cuts.

“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 possible,” McCarthy said.

Peloton also is cutting several positions in its in-house support team and instead will rely on third parties.

“These expanded partnerships mean we can ensure we have the ability to scale up and down as volume fluctuates.”