Peloton Interactive Inc. has announced that it is laying off about 11% of its global workforce as part of a renewed effort to cut costs and streamline operations. The decision, made public on January 30, affects nearly 300 employees and is one of the most significant steps taken by the company under its new leadership.
The layoffs will have a notable impact on engineering teams, particularly those working on long-term technology and internal development projects. Peloton said the move is aimed at improving efficiency and ensuring resources are focused on areas that directly support customers and revenue growth.
In an internal message to employees, CEO Peter Stern said the company needs to operate with greater discipline as it works through a challenging business environment. He acknowledged the difficulty of the decision and thanked departing employees for their contributions, adding that Peloton will provide support during their transition.
The job cuts are part of a broader plan to reduce at least $100 million in annual expenses. Along with workforce reductions, Peloton has been reviewing its real estate footprint and internal processes to lower fixed costs. The company said these changes are necessary to create a more sustainable operating model.
Peloton’s announcement comes just days before it is due to report its latest quarterly earnings, a period that has kept investors cautious. Demand for connected fitness equipment has remained uneven after the pandemic boom, and newer products — including AI-enabled features and redesigned hardware — have yet to deliver a strong turnaround in sales.
The company has also raised prices for some of its bikes, treadmills and subscription services in recent months, a move aimed at improving margins but one that has drawn mixed reactions from consumers.
Peloton has gone through several rounds of restructuring in recent years as it adjusts to changing consumer behaviour and tougher competition in the fitness and technology space. The latest layoffs highlight the ongoing pressure on consumer tech companies to balance innovation with profitability.
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