On the heels of a third round of layoffs, Peloton is now planning to redesign its bikes so users can assemble them independently. CEO Barry McCarthy is also considering a plan that would allow Peloton app subscribers to potentially view workouts on third-party workout machines. McCarthy Told Bloomberg that Peloton has been working on a redesign of the bike “for some time” and, to top it all off, said he hopes Peloton’s long-awaited rower can debut this holiday season. He also confirmed that the company hasn’t completely ditched the Tread Plus.

This all follows comments McCarthy made in May during the company’s third quarter 2022 results. At the time, he floated the idea of ​​potentially changing the hardware design so that in the future, the Peloton equipment is designed to arrive at a customer’s home in one piece. Right now, Peloton’s treadmills and bikes require high-end delivery in separate parts, with a team coming to your house and building yours for you. The service was free, but Peloton started charging an additional $250 to $350 in late January.

The move is part of Peloton’s ongoing restructuring plan, which aims to reduce the company’s costs and improve cash flow. On Friday, Peloton announced it was cutting more than 500 jobs related to last-mile deliveries and product distribution. The company also noted that it was raising the cost of its Bike Plus and tread while closing outlets in 2023. Making sure customers could assemble their own gear would mean the company could just ship devices via FedEx – which is a move by this rowing rival. Hydrow has recently been implemented with its slimmer and smaller Hydrow Wave rowing machine.

Peloton plans to redesign its hardware so that users can assemble its bikes themselves.
Photo by Amelia Holowaty Krales/The Verge

Since taking office in February, McCarthy has been quick to share new ideas on how to turn around Peloton’s shaky financial fortunes. Money saved from Friday’s cost-cutting measures will supposedly be funneled back into Peloton’s R&D as well as marketing efforts. This includes marketing Peloton’s standalone app, which McCarthy identified as historically receiving little or no promotion. This lines up with other plans the CEO has leaked Bloomberg, including potentially allowing Peloton users to stream classes to third-party training machines. McCarthy also noted that the company could change the app’s subscription strategy to a “freemium” model where certain features aren’t locked behind a paywall.

This strategy is similar to what Apple currently does for its Fitness Plus service, which does not require the use of an Apple-branded exercise machine. Instead, people can use their own devices to stream Fitness Plus classes while using rowers, treadmills and bikes at their local gym. The main difference is that Apple still requires users to have at least an Apple Watch and an iPhone to access Fitness Plus.

But while McCarthy seems keen to move into services, it seems hardware still has a role to play in Peloton’s business. For example, the company is gearing up to launch a rowing machine, potentially this holiday season. The rowing machine was perhaps the worst-kept secret in connected fitness until it was confirmed earlier this year at Peloton’s annual Homecoming event for subscribers.

The Tread Plus was recalled after causing several injuries, but Peloton hasn’t given up on relaunching the product.
Image: Platoon

More surprisingly, McCarthy hinted that the company was hoping to relaunch the Tread Plus, which was recalled last year after causing multiple injuries and the death of a small child. While its Tread and Tread Plus machines were recalled, the Tread was later approved for sale towards the end of 2021. The Tread Plus, however, remains out of circulation. In the third quarter, the company also noted that returns from the high-end treadmill were higher than expected, costing it $18 million. According to McCarthy, the relaunch of the Tread Plus is entirely dependent on government clearance for the sale. It’s possible that while Peloton hasn’t lost hope on the Tread Plus, it’s not something he’s betting on either. On Friday, part of the rationale for raising the price of the “affordable” tread by $800 was to position it as a superior device and reinforce Peloton’s “premium” image.

Another interesting tidbit is that Peloton may be preparing to expand its One Peloton Club rental pilot. The program bundles the cost of biking and lessons into one monthly fee of $89. The pilot has so far been a success for the company, with McCarthy saying in May that the program had “mass market appeal” as 53% of signups came from households with incomes below $100,000.

Peloton is expected to hold its fourth quarter 2022 earnings call later this month, on August 25, and we’ll likely know more about the remaining plans then. So far, Peloton’s restructuring efforts have gotten off to a slow start, and Wall Street investors have appeared broadly skeptical.