Peloton Cuts Workforce by 11% in Fresh Round of Layoffs

As part of cost-cutting efforts, fitness technology business Peloton Interactive Inc. has laid off 11% of its workforce, with engineering teams accounting for the majority of the layoffs. On January 30, Peter Stern, Peloton's CEO since 2025, informed staff members of the layoffs. The impacted engineers worked on projects and technology for business clients. Notably, Peloton's new artificial intelligence-powered bikes and treadmills had poor sales last year, which led to the layoffs. According to a media report, the company's quarterly results are due next week.

Job Cuts are Part of Peloton’s $100 Mn Cost-Cutting

A Peloton representative informed reporters that the job losses are a part of a $100 million cost-cutting initiative that was previously disclosed. These adjustments are inclined to restructure the company's staff and, in some circumstances, the places where the brand works to optimise savings.

Today's activities change the company's operational footprint and generate efficiencies that allow it to keep investing in areas that help the business develop again. The spokesperson stated that Peloton is dedicated to helping its leaving colleagues through this transition and is appreciative of their contributions.

A Peloton Rides Through Challenging Conditions

Peloton has been stuck in a long sales downturn after COVID-19 pandemic lockdowns ended. Growth has not been reignited despite recent endeavours to enhance technology and sales. The company introduced redesigned versions of the Bike and Tread in October 2025, as well as a Row that supplanted the previous rowing machine. Peloton IQ, an AI platform that provides personalised guidance, insights, and coaching programmes, was integrated into all of the new machines. In addition, Peloton implemented price increases across its portfolio, with an average of 11% in equipment costs and approximately 19% in subscription fees.

Analysts at the time feared that the hikes would jeopardise Peloton's plans to grow its membership in the face of a faltering economy. Peloton proactively recalled approximately 8,77,800 of its previous high-end Bike products in Canada and the United States later that month. Users had reported that certain seat posts had broken, resulting in falls. Also in 2023, Peloton had recalled more than 2 million seats for its original Bike product.