Peloton announced it would lay off about 800 employees and raise prices on select products.
The exercise equipment company told CNN Business the move was made to "become more efficient, cost-effective and agile."
Those affected include warehouse employees, delivery and installation staff and the customer support team.
The company expects its employment numbers to hover around 5,000 following the layoffs.
Prices for the Bike+ and Tread will increase by $500 and $800, respectively.
Peloton also said it would outsource delivery to third parties and "significantly reduce" 86 retail stores in North America.
This news follows Peloton's July announcement that it intends to exit all in-house manufacturing.
Simultaneously, Peloton plans to expand its relationship with Taiwanese manufacturer Rexon Industrial.