Internet fitness platform Peloton announced that it will lay off about 800 people.

CTOnews.com, Aug. 14 (Xinhua)-- Internet fitness platform Peloton said on Friday local time that the company plans to cut about 800 jobs in order to reduce the size of its operations and reduce costs, according to the Wall Street Journal.

CTOnews.com learned that Peloton noted that the North American field operations warehouse would be closed, member support teams would be laid off, and other changes would be made, which would result in 784 job losses. In addition, Peloton plans to scale back its previously expanding retail business and raise US prices for some of its products.

Barry McCarthy, chief executive of Peloton, said in an email to employees that Peloton would outsource its last mile delivery to a third party by reducing warehouses, a move that would reduce delivery costs per product by up to 50 per cent.

When talking about the reasons for the layoffs by the member support team, Peloton said the number of questions received was lower than expected. Internal notices show that the work will also be outsourced to third-party providers.