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Peloton told employees Friday it's slashing 784 jobs, increasing equipment prices, closing several retail locations and requiring all non-remote employees to return to the office by Nov. 14.

The decision comes as the pandemic darling tries to claw back profits after a 90% loss of its share price upon gym reopenings early this year.

 

CEO Barry McCarthy, a tech veteran who took over the company in February, said he hopes today's decisions will 'better position the company for long term success.'

CEO Barry McCarthy, a tech veteran who took over the company in February, said he hopes today's decisions will 'better position the company for long term success.'

The layoffs will come from the company's distribution and customer service teams.

McCarthy also announced Peloton will stop using in-house employees and vans to deliver equipment, shuttering 16 North American warehouses. 

'This has been a challenge,' McCarthy wrote in the memo to the company Friday. 'We won't fix it overnight, but we have no choice but to make it work.'

Peloton said last month it would cut about 570 employees in Taiwan and nearly 3,000 employees in February.

Peloton's layoffs, store closures and price increases comes as the pandemic darling tries to claw back profits after a 90% loss of its share price upon gym reopenings early this year.

Pelton will raise the price of its flagship Bike+ (left) by $500 to $2,495 and its Tread treadmill (right) by $800 to $3,495.

In regard to equipment, the company will raise the price of its flagship Bike+ by $500 to $2,495 and its Tread treadmill by $800 to $3,495.

The price cuts 'cheapened at least the perception of the brand,' McCarthy said. 'So this is a return to historical positioning.'

Pelton also intends to undergo a 'significant and aggressive reduction' of its retail footprint across North America next year.

The company currently operates 86 stores across the US and Canada. 

It remains unknown how many will be shuttered as part of today's plan for Peloton's future.

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 Peloton is making other changes, including a return to in-person work. 

Office employees will have to come in at least three days a week starting Sept. 6, McCarthy said Friday. 

This type of return is in line with the approach used by other tech companies, such as Apple, but marks a sharp turn for a company that benefited from the work-from-home lifestyle.  

McCarthy (left), a former Spotify and Netflix exec, vowed to cut costs, improve Peloton’s products and move increasingly to a subscription-based model.

The massive series of announcements today come six months after McCarthy was appointed CEO in a broader management reshuffling. 

The former and Netflix Inc. executive vowed to cut costs, improve Peloton’s products and move increasingly to a subscription-based model. The former Spotify and Netflix executive vowed to cut costs, improve Peloton’s products and move increasingly to a subscription-based model.

The company ended the quarter with $2.96 million connected fitness subscribers, which are people who own one of the company’s products and pay for a membership to its live and on-demand workout classes.

“We have to make our revenues stop shrinking and start growing again,” McCarthy added at the end of Friday’s memo. “Cash is oxygen. Oxygen is life.”

Peloton is expected to report its fiscal fourth-quarter results on August 25.

News Source: dailymail.co.uk

Tags: topics index peloton’s products ’better position decisions mccarthy mccarthy said peloton employees the company a return

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Target announces major collaboration with legendary product that used to only sell door-to-door

TARGET has announced a new collaboration with iconic kitchen staple Tupperware.

The big-box department store chain CEO Miguel Fernandez announced the huge collaboration in a LinkedIn post on Monday.

2The announcement of Target's collaboration with Tupperware comes just months after Tupperware’s June launch on AmazonCredit: AFP 2The expansion is with hopes to get its products in front of younger consumers who never experienced the era of Tupperware parties

The announcement of Target's collaboration with Tupperware comes just months after its June launch on Amazon.

Tupperware has historically sold its plastic food storage containers solely through in-home “Tupperware parties” and through its own website.

The age-old household brand has also had brief and limited pilot programs with some retailers like HomeGoods, Bed Bath and Beyond, and Target itself.

"Two and a half years ago, I joined Tupperware as we embarked on a journey to reinvent the company with one goal in mind: to build a business as big as our iconic Tupperware brand," Fernandez said.

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In his LinkedIn announcement, he went on to say that Target is reinventing the business model it has "operated with for over 75 years."

"To bring more products to more consumers through an omnichannel strategy while continuing to fortify our direct selling business."

Beginning this week, shoppers can find Tupperware in Target stores nationwide as well as on the Target website in a variety of container sizes and container bundles priced between $7.99 to $79.99.

Fernandez said that a "creation of an 'and, not or'" ecosystem is "critical" to Target's "transformation."

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"Like no other for new and existing customers to participate in the Tupperware community."

He also said the store chain will continue to host "timeless Tupperware parties and we’ll offer our products in new channels."

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This collab is part of Tupperware’s larger strategy to reinvent the brand, with plans to expand the business through multiple retail channels.

The expansion is with hopes to get its products in front of younger consumers who never experienced the era of Tupperware parties.

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