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Fitness technology firm Peloton Interactive Inc. has laid off about 11% of its global workforce. Most of the job cuts affected engineering teams, Bloomberg reported, citing a source familiar with the company’s operations.
The layoffs reflect mounting pressure on the company as it struggles to revive growth amid weak demand for its latest products.
The report states that Peter Stern, who started his role as Chief Executive in 2025, notified employees about the decision on January 30. The source identified that technology development and enterprise-focused initiatives were the most impacted domains.
The upcoming quarterly earnings announcement from Peloton carries additional importance because it occurs at this particular time.
The layoffs occurred because Peloton’s AI-enabled bikes and treadmills, which were released last year, failed to meet sales expectations. The company launched updated models of its Bike, Bike+, Tread, and Tread+ products together with a new Row machine on 2025 October.
All devices used Peloton IQ, which is an artificial intelligence system that delivers personalized coaching and training plans and performance assessment. The new lineup introduced an upgrade, yet it did not succeed in creating a lasting increase in product demand.
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Responding to Bloomberg, a Peloton spokesperson said the layoffs are part of a previously announced $100 million cost-cutting program.
“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 spokesperson said, adding that the company would support affected employees through the transition.
Peloton has experienced persistent declining sales results, which began after the pandemic lockdowns ended. The company raised equipment prices by 11% and subscription fees by 19%, which created doubts about its ability to attract new customers.
Peloton conducted a recall of approximately 8,77,800 high-end Bike units in the US and Canada in late 2025 because of safety problems, which followed a 2023 recall of over 2 million seats. The recent job cuts at Peloton join a larger trend of job elimination that has affected multiple technology companies, including Meta Platforms Inc. and Amazon.com Inc., which recently declared workforce reductions.
