Fitness technology giant Peloton Interactive Inc. has recently undertaken significant cost-cutting measures, including an 11% reduction in its workforce. The majority of these job cuts have impacted its engineering teams, as reported by Bloomberg, citing an informed source. According to the same source, Peloton's CEO, Peter Stern, who assumed his role in 2025, communicated these layoffs to employees on January 30th. The affected engineers were primarily involved in developing technology and initiatives for the company's enterprise customers.

These recent layoffs are understood to be a direct consequence of low sales performance for Peloton's new artificial intelligence-powered bikes and treadmills throughout the past year. The company's upcoming quarterly financial results are anticipated soon, which are expected to shed more light on its current fiscal health.

In response to inquiries regarding the job reductions, a spokesperson for Peloton confirmed to Bloomberg that these actions are part of a previously announced $100 million cost-cutting initiative. This effort involves "reshaping our teams and, in some cases, the locations where we work" to achieve optimal savings. The spokesperson further stated, "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."

Peloton has been grappling with a prolonged sales slump ever since the conclusion of COVID-19 pandemic lockdowns. Despite various recent endeavors to enhance its technology and sales strategies, the company has struggled to rekindle growth. In October 2025, Peloton launched redesigned versions of its flagship products, including the Bike, Tread, and a new Row machine, which replaced its predecessor. A key feature across all these new machines was Peloton IQ, an advanced AI platform designed to offer personalized guidance, insights, and tailored coaching plans to users.

Alongside the product overhaul, Peloton also implemented price increases across its entire portfolio. Equipment costs saw an average rise of 11%, while subscription fees climbed by approximately 19%. At the time of these price adjustments, industry analysts voiced concerns that such hikes might hinder Peloton's objectives to expand its member base, especially amidst a challenging economic climate.

Adding to its challenges, in October 2025, Peloton voluntarily recalled approximately 877,800 units of its previous high-end Bike product in both Canada and the US. This recall was prompted by numerous user complaints regarding seat posts breaking, which led to falls. This incident was not isolated, as Peloton had previously recalled over 2 million seats for its original Bike product in 2023 due to similar issues.

Peloton's workforce reduction is indicative of a broader trend sweeping across the tech industry. Several other prominent technology companies have also announced significant job cuts recently. Meta Platforms Inc. revealed plans to cut over 1,000 jobs. Amazon.com Inc. disclosed intentions to eliminate 16,000 corporate roles. ASML Holding NV stated it would eliminate approximately 1,700 positions, while Autodesk Inc. planned to shed around 1,000 workers. Pinterest Inc. also announced its decision to cut "less than 15%" of its workforce, underscoring a period of widespread restructuring and cost optimization within the sector.