Peloton to Cut 800 Jobs, Hike Prices and Shut Stores in Shake-Up (3)

Peloton Interactive Inc. will embark on a sweeping overhaul that includes cutting nearly 800 jobs, raising prices for its Bike+ and Tread machines, and outsourcing functions such as equipment deliveries and customer service to outside companies.

The changes, which the company disclosed Friday in a memo to employees, also include gradually closing many of its retail showrooms — a process that will get underway next year. It’s the widest-ranging shake-up yet under Chief Executive Officer Barry McCarthy, a tech veteran who took the helm in February.

Peloton is hoping to turn around a business that thrived during the early days of the ...