Peloton Interactive, Inc. has laid off 11 percent of its workforce amid cost-cutting measures, with most of the cuts coming from its engineering teams, according to multiple reports.
A source told Bloomberg, which first reported the layoffs, that Peloton’s CEO, Peter Stern, who took the role in 2025, informed employees of the cuts on January 30. The affected engineers reportedly worked on technology and efforts for enterprise customers.
Peloton employed more than 2,600 people as of June 30, 2025, according to its annual filing for fiscal year 2025.
Peloton said in a media statement, “Today’s actions evolve our operational footprint and create efficiencies that enable us to continue investing in areas that support our return to growth. We are deeply grateful for the contributions of our departing colleagues and are committed to supporting them through this transition.”
Bloomberg noted that the layoffs come amid reports that initial sales of the AI-equipped gear have been sluggish.
Last August, Peloton laid off six percent of its workforce and told investors it would continue layoffs globally in 2026, aiming to cut at least $100 million in annual spending by the end of the fiscal year.
Peloton has struggled to revive sales growth since the pandemic lockdowns ended.
In October 2025, Peloton released redesigned versions of its Bike and Tread models, along with Peloton Row+, which replaced the previous rowing machine. All the new machines included Peloton IQ, an AI platform that offers personalized guidance, insights and coaching plans. Peloton also raised prices across its equipment portfolio by an average of 11 percent and subscription fees by about 19 percent.
Peloton also voluntarily recalled around 8,77,800 of its previous high-end Bike products in North America last October after users complained that some seat posts broke and caused falls.
Peloton is scheduled to report its fiscal second-quarter results before the U.S. stock market opens on Thursday, February 5.
Image courtesy Peloton
