 |
|
|
 |
18 Aug 2022
Peloton becomes the latest pandemic boomtime business to announce restructuring, as out-of-home fitness bounces back
BY
Tom Walker
|
Since lockdowns ended and people returned to facilities Peloton has found the going much tougher
photo: Peloton
Peloton is set to axe around 800 jobs, increase the price of its equipment and close some of its retail operations as part of efforts to turn around the decline in its business. The troubled at-home fitness giant has seen its share price plummet from a high of US$162 in December 2020 to the current US$13.
The company has struggled to capitalise on its pandemic successes, which were partly driven by gyms being forced to close and people looking for alternative exercise options – a "pivot" with which Peloton became near-synonymous.
Since lockdowns ended and people returned to facilities, Peloton has found the going much tougher.
Current Peloton CEO Barry McCarthy replaced former CEO John Foley in February 2022 as part of a drive to get the company back on track.
Since then, McCarthy has initiated an aggressive strategy which has placed cutting costs and increasing revenues at its heart.
McCarthy recently announced that Peloton will exit all owned manufacturing operations, cease making its own products and, instead, expand its partnership with Taiwan-based manufacturer Rexon.
The move came just 14 months after Peloton acquired equipment creator Precor, in a deal worth US$420m, renaming it Peloton Commercial. The move saw the eventual exit of long-time Precor leader, Rob Barker.
The Precor deal, agreed under the stewardship of John Foley, was meant to result in Peloton establishing a US-based manufacturing operation, helping it to meet the increased demand for its products created by the pandemic.
Now, adding to the U-turn in its manufacturing plans and the string of job cuts, Peloton said it will also increase the prices of its equipment.
The latest move comes as inflation and increases in gas and energy prices are putting pressure on the cost of living for consumers globally.
In the US, the price of the Peloton Bike+ will increase by US$500 to US$2,495. The price of the Peloton Tread will increase by US$800 to US$3,495. In Canada, the price of the Peloton Bike+ will increase by CA$800 to CA$3,295. The price of the Peloton Tread will increase by CA$1,100 to CA$4,495.
In the UK, the price of the Peloton Bike+ will increase by £150 to £1,995. The price of the Peloton Tread will increase by £900 to £3,345. In Germany, the price of the Peloton Bike+ will increase by €500 to €2,495. The price of the Peloton Tread will increase by €1,100 to €3,795. In Australia, the price of the Peloton Bike+ will increase by AU$350 to AU$3,345. The Peloton Tread is currently not available in Australia.
In a statement, the company said: "Inspired by the progress we've made on our transformation journey, we're adopting a more strategic pricing strategy for our premium products.
"Price is just one of the many levers we will continue to explore as part of our business transformation strategy."
 |
|
|
|
|
|
|
|
|
|
Connect with
World Leisure |
|
|
|
|
|
|
|
|
|
|
|
|
|
| News headlines |
|
|
 |
 |
|
19 Apr 2024
Norwegian health club operator, Treningshelse Holding, which owns the Aktiv365 and Family Sports Club fitness chains, has acquired fellow Norwegian operator, Aktiv Trening. The
.... more>> |
|
|
|
 |
|
19 Apr 2024
The HCM team were busy at the recent FIBO Global Fitness event in Cologne, Germany, distributing a special FIBO edition of HCM in
.... more>> |
|
|
|
 |
|
18 Apr 2024
Atlanta-based boutique fitness software company, Xplor Mariana Tek, has kicked off a push for international expansion. Shannon Tracey, VP of sales
.... more>> |
|
|
|
 |
|
18 Apr 2024
The Global Wellness Institute (GWI) has released new data on the US’ wellness economy, valuing it at US$1.8 trillion. According to the
.... more>> |
|
|
|
|
|
 |
|
| Company profile |
|
ABC Trainerize
ABC Trainerize is a member engagement mobile app and software platform that allows coaches and fitness businesses to expand their reach beyond their physical space, better connect with members, and digitize the training experience.
View full profile>> |
|
| Catalogue gallery |
|
|
| Featured Supplier |
|
 |
|
|
|
in this issue
• Virgin gets right to wipe out rent arrears
• Fitness industry mourns passing of Jan Spaticchia
• STA offers mindfulness resources
|
|
|
|
|
|
|
 |
| World Leisure jobs |
 |
Centre Manager (Leisure)
Salary: £40,221 - £42,403pa + pension + benefits
Location: Exeter, UK
Company: Exeter City Council
|
|
Director of Operations
Salary: £61,000 - £64,000 + exceptional pension + excellent benefits
Location: Luton, UK
Company: Active Luton
|
|
|
|
|
|
| Diary dates |
|
| Powered
by leisurediary.com |
 |
|
|
|
|
