Peloton layoffs: Headcount reduced by 11%, engineering teams impacted in cost-cutting move

Fitness technology company Peloton Interactive Inc. has reduced 11% headcount, with majority job cuts coming from engineering teams amid cost-cutting measures, Bloomberg reported citing a source in the know.

According to the source, Peloton's CEO Peter Stern, who took the role in 2025, told employees about the cuts on 30 January. The affected engineers worked on technology and efforts for enterprise customers, they added.

Notably, the layoffs come on the back of low sales for Peloton's new artificial intelligence-powered bikes and treadmills last year. The company's quarterly results are due next week, as per the report.

Peloton layoffs: What has the company said?

Responding to queries, a spokesperson for Peloton told Bloomberg that the job cuts are part of a previously announced $100 million cost-cutting effort, which includes “reshaping our teams and, in some cases, the locations where we work”, to optimise savings.

“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,” the spokesperson added.

Peloton struggling with low sales: What's the status?

According to the report, Peloton has been stuck in a long sales slump since COVID-19 pandemic lockdowns ended, and recent efforts to improve tech and sales have been unsuccessful in reigniting growth.

In October 2025, the company released redesigned versions of the Bike, Bike, Tread and Tread, along with a Row that replaced the previous rowing machine. All of the new machines included Peloton IQ, an AI platform offering personalised guidance, insights and coaching plans.

Peloton also raised prices across its portfolio, increasing equipment costs by an average of 11% and subscription fees by about 19%. At the time, analysts were concerned that the hikes would undermine Peloton’s goals to increase members amid a slow economic climate.

Later the same month, Peloton voluntarily recalled around 8,77,800 of its previous high-end Bike product in Canada and the US after users complained that some seat posts broke and caused falls. Prior to this, in 2023 too, Peloton had recalled over 2 million seats for its original Bike product.

Tech industry's job cutting spree continues

Peloton joins a slew of other tech companies that have recently slashed their workforces.

• Meta Platforms Inc. said this month that it would begin cutting more than 1,000 jobs.
• Amazon.com Inc. announced plans to eliminate 16,000 corporate roles in January.
• ASML Holding NV said it would eliminate roughly 1,700 jobs.
• Autodesk Inc. disclosed plans to shed around 1,000 workers.
• Pinterest Inc., meanwhile, said this week that it plans to cut “less than 15%” of its workforce.

(With inputs from Bloomberg)