• Peloton, a manufacturer of connected fitness equipment, has announced the plans to discontinue its in-house delivery function and shut down 16 warehouses across North America as a result eliminating 532 jobs from related functions. In addition, Peloton will also lay off 252 staff from its customer support teams as the company aims to outsource both distribution and customer support to third-party organizations.

• Along with the reorganization Peloton also announced price increases for its flagship product Bike+ (by USD 500 to USD 2,495) and Tread (by USD 800 to USD 3,495). The price increase for Bike+ is a reversal of its price cuts in April, which was initiated in a bid to clear out inventory. The new price of the Tread is however higher than it was in April.

<ul><li> Analyst QuickTake: Peloton is in the process of a major restructuring in the backdrop of declining revenues and mounting losses . New CEO Barry McCarthy is at the helm of the company’s reorganization efforts and since February has laid off over 4,000 staff as it cuts down on operations. Just last month about 570 employees were laid off from Peloton’s Taiwanese subsidiary as it ceased in-house production.</ul>