Peloton Cuts 11% of Workforce Shortly After AI Hardware Launch

Peloton announced on Friday that it will be reducing its workforce by approximately 11 percent, primarily affecting engineers involved in technology and enterprise initiatives.

This move follows a previous layoff of six percent of its staff last August, with the company indicating that further reductions would continue into 2026 as part of a strategy to save at least $100 million in annual expenses by the end of the fiscal year.

In an effort to revitalize its business after the slowdown following its pandemic-driven growth, Peloton has introduced new hardware featuring Peloton IQ AI capabilities. The Cross Training Series, launched last October, includes updated models like the Bike, Bike Plus, Tread, Tread Plus, and Row Plus, all designed to offer real-time form feedback, workout analysis, and AI-generated workout plans, alongside a rise in subscription prices. However, sales have been consistently declining, and reports suggest that initial sales of the new AI-integrated equipment have been underwhelming.

Attempts to reach Peloton for a direct comment were unsuccessful.