Peloton cuts 11% of workforce soon after AI hardware launch

American fitness and media company Peloton slashed 11% of its staff, mostly engineers working on technology and enterprise efforts, following a sluggish start to its AI-powered equipment.

The new chief executive, Peter Stern, informed staffers of the decision on Friday, Bloomberg reports, citing people familiar with the matter.

The layoffs come after low sales for Peloton's new AI-powered bikes and treadmills. The company heavily bet on artificial intelligence in its new portfolio revamp, adding Peloton IQ, an AI-supported feature that acts as a personal trainer. The assistant was added to redesigned versions of the Bike, Bike+, Tread, Tread+, and Row+.

As a result of the new feature addition, the company significantly hiked prices, with the Tread+ selling for $6,695, a whopping $700 increase. Overall, equipment costs increased by an average of 11% and subscription fees by about 19%.

Prior to the launch of Peloton IQ, Peloton had experimented with a $495 attachable camera, known as the Guide, which also offered training feedback, but was removed from sale.

Although chief product officer Nick Caldwell said that the “company learned a lot from that product,” its new product line, called the Cross Training Series, saw modest sales across the US eight weeks post-launch, according to Bloomberg.

A Peloton spokesperson told the publication that the layoffs are part of a previously announced plan to save $100 million, which includes “reshaping our teams and, in some cases, the locations where we work.”

“Today’s actions evolve our operational footprint and create efficiencies that enable us to continue investing in areas that support our return to growth,” the spokesperson added. “We are deeply grateful for the contributions of our departing colleagues and are committed to supporting them through this transition.”

Layoffs are becoming more common among tech companies. Just in January, Amazon cut 16,000 jobs in its second round of cuts in three months. Pinterest also confirmed layoffs, announcing it was cutting roughly 15% of its workforce.

Layoffs in the past year:

• Dell: 13,000
• Intel: 27,000
• Meta: 11,000
• UPS: 48,000
• FedEx: 12,000
• Boeing: 17,000
• Verizon: 15,000
• Walmart: 12,000
• Amazon: 30,000
• Microsoft: 15,000
• Citigroup: 20,000

Job security is an illusion. https://t.co/VhXz0Ysvki

undefined Andrew Lokenauth | TheFinanceNewsletter.com (@FluentInFinance) January 28, 2026

Meta Platforms announced plans to let go of 10% of employees who work in the company’s Reality Labs division in January, while the semiconductor giant ASML said it would eliminate about 1,700 roles in the US and the Netherlands.