Peloton said on Friday that it’s cutting around 11 percent of its staff, mostly impacting “engineers working on technology and enterprise-related efforts,” reports Bloomberg.
Last August, Peloton laid off six percent of its workforce and told investors it would continue layoffs globally in 2026, in an attempt to cut at least $100 million of annual spending by the end of the fiscal year.
Peloton’s latest strategy shift to reverse the effect of its pandemic-era boom stalling out has also brought new hardware with Peloton IQ AI features. The Cross Training Series that debuted last October includes a new Bike, Bike Plus, Tread, Tread Plus, and Row Plus that add real-time form feedback, workout analysis, and AI-generated workout routines, as it increases its subscription prices. Sales have been on a persistent downward spiral, and Bloomberg noted an earlier report that initial sales of the AI-equipped gear have been sluggish.
The Verge contacted Peloton but did not receive an on-the-record response.