Peloton has laid off 11 percent of its staff as part of cost-saving measures as the company moves forward with its planned turnaround to stabilize the brand.
The cuts were first revealed on Friday and later confirmed by a company spokesperson.
“Today’s actions evolve our operational footprint and create efficiencies that enable us to continue investing in areas that support our return to growth,” the company said in a statement.
It is unclear how many roles will be impacted, but Peloton reported in its annual filing for the fiscal year 2025 that more than 2,600 people were employed at the company.
Peloton CEO Peter Stern told staffers about the layoffs in an internal memo and the cuts would primarily impact engineering teams and individuals working on enterprise-related operations, according to a report from Bloomberg.
The move is likely to be addressed in the company’s next quarterly earnings report on February 5.
Stern has served Peloton’s chief executive since January 2025 after being appointed in October 2024 and quickly implemented measures to turn around the struggling brand which has seen its stock price fall a staggering 94 percent since the height of the Covid-19 pandemic.
The company thrived in 2020 and 2021 as widespread lockdowns drove customers toward its connected fitness bikes that offered a range of workout classes. At the same time, Peloton struggled to keep up with backorders, sort supply chain issues and pivot amid recalls of its bike and treadmill products, which were key sellers. The company’s reputation later suffered and as pandemic-related restrictions were eased, the demand for its once-popular hardware had slowed.
Meanwhile, Peloton said it would eliminate 6 percent of its workforce as part last year as it targeted a goal of saving $100 million by the end of fiscal year 2026.
In early January, Stern issued an open letter to shareholders that stressed how critical it would be for the company to embrace strength training as a measure to have other forms of workout co-exist with its cardio offerings.
“There is arguably no time of year more relevant to Peloton than the first week of January,” Stern said in the letter. “This is when many people choose to join our community for the first time and many of our Members – past and present – renew their commitment as they resolve to make and sustain better daily choices throughout the year.”
But the internal changes at Peloton will persist in 2026 as restructuring will mean cutting staff globally, reducing spending and putting stake in newer additions to its ecosystem like Peloton IQ, which launched in October as a health personalization initiative using AI.
It also comes at a cost to customers, as subscription prices and hardware saw increases in October in what were viewed as necessary changes in addition to introducing its commercial line of equipment called the Peloton Pro Series. The products are built with better durability in mind and geared toward increased usage in hotels, multi-family residences and gyms.
Peloton’s shares were down over 9 percent in January as the company eagerly seeks to rebounds from a nearly 30 percent drop in 2025.
