Peloton Interactive has eliminated approximately 286 positions, or 11 percent of its workforce, as the connected fitness company accelerates cost-cutting measures ahead of its quarterly earnings report next week.
The layoffs, confirmed by a Peloton spokesperson on Jan. 30, primarily affected engineering teams focused on technology and enterprise initiatives. CEO Peter Stern informed employees of the decision the same day, according to reports from Bloomberg News and Reuters.
The cuts represent the latest effort by Stern, who assumed leadership in 2025, to stabilize the company’s finances through operational restructuring and pricing adjustments across both hardware and subscription offerings.
Repeated restructuring signals deeper challenges
The Jan. 30 announcement continues a pattern of workforce reductions that have reshaped Peloton’s organizational structure since 2024. In Aug. 2025, the company eliminated six percent of staff as part of a $100 million (€96m) cost restructuring initiative. That followed a more substantial round in May 2024, when approximately 400 employees were terminated alongside a $200 million (€192m) restructuring effort and the departure of then-CEO Barry McCarthy.
The company employed more than 2,600 people as of June 30, according to its fiscal 2025 annual filing, meaning the latest reductions affect several hundred workers across the organization.
Financial markets have reflected continued uncertainty about Peloton’s turnaround prospects. Shares declined more than nine percent through January 2026, following a nearly 30 percent drop throughout 2025, according to market data. Peloton is scheduled to report quarterly earnings on Feb. 5.
