Peloton's stock shot up more than 13% Friday, after the company said it would lay off more people and begin "aggressive" cost cutting measures that will include store closures.

Why it matters: Peloton shot to prominence during the pandemic lockdowns, quickly becoming a poster child of the stay-at-home rally among technology stocks.

• With that effect long gone, the company is now in the midst of a turnaround strategy: In the past year it's already replaced its CEO and laid off at least 2,800 people.

Details: Peloton is now cutting approximately 780 jobs in areas including delivery, and customer support, CNBC and Bloomberg first reported.

• At the same time, CEO Barry McCarthy wrote in a company memo reviewed by Axios that the company will continue to recruit for people in "key" roles such as software engineering.

The big picture: Peloton has admitted to being overly optimistic about how many people were interested in its products and services.

• The fitness equipment maker and platform has been facing an inventory glut, as consumer demand diminished after the height of the pandemic.
• The brand has halted production of its bikes and treadmills, canceled plans to open a manufacturing facility, and outsourced delivery and logistics of its products.

What to watch: The company is also reversing its April decision to cut the price of some of its products in an effort to generate free cash flow.

• The price of the Bike+ is now back to $2,495 in the United States and its Tread machine is now $3,495, a $650 increase from its initial price.
• The changes are designed to "maintain [Peloton's] position as the undisputed premium brand in the Connected Fitness category," McCarthy wrote.

Our thought bubble: Most people who wanted a Peloton likely already have one. To try to sell the equipment now to new customers, when they are like now also more interested in spending on experiences than goods, seems like yet another uphill battle.

Read the email that Peloton CEO Barry McCarthy shared with the company: