Peloton to raise Bike+ prices by $500, will reported cut nearly 800 jobs and stock shoots up
Shares of Peloton Interactive Inc. shot up 9.1% toward a two-month high in afternoon trading Friday, after the at-home fitness company announced price increases for its Bike+ and Tread products. Separately, Barron's reported that Peloton was cutting nearly 800 jobs as part of a strategic overhaul. The price of the original Peloton Bike and Peloton Guide remain unchanged. The company said the price for a Peloton Bike+ in the U.S. will increase by $500 to $2,495, while the price for the Peloton Treat will rise $800 to $3,495. The move comes after the company cut prices in April to make the entry point for new members more accessible. "Inspired by the progress we've made on our transformation journey, we're adopting a more strategic pricing strategy for our premium products," the company said in a statement. Regarding the job cuts, the company said they were a result of its decision to eliminate its North America distribution and logistics network and its customer service team, the Barron's report said. The reported job cuts follows Peloton's announcement in February that 2,800 jobs would be lost as part of a cost-cutting plan. Peloton's stock has plunged 63.7% year to date, while the S&P 500 has lost 10.8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.