Fitness technology company Peloton announced on Friday that it is laying off about eleven percent of its global staff, according to reports from Bloomberg.
The majority of these reductions are concentrated within the engineering division, specifically affecting personnel working on technology and enterprise-related efforts, as stated by the company.
This latest workforce reduction follows a six percent staff cut implemented last August, signaling continued cost-containment measures by the firm.
Peloton previously informed investors that it intended to continue global layoffs throughout the fiscal year 2026 to achieve an annual spending reduction target of at least $100 million.
This strategic restructuring occurs as the company attempts to stabilize following the saturation of demand experienced during the peak of the pandemic era.
Simultaneously, Peloton introduced new hardware featuring Peloton IQ AI capabilities, such as real-time form feedback and AI-generated routines, alongside increases to its subscription pricing.
However, reports noted that initial sales figures for this newly launched, AI-equipped gear have been sluggish, contributing to the current financial recalibration.
The company's ongoing efforts demonstrate the challenges hardware manufacturers face when re-aligning business models after an intense, but temporary, period of accelerated consumer demand.
