Peloton lays off 11 percent of its staff just a few months after launching its AI hardware

"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 . 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."

Peloton is reducing its workforce by around 11 percent, with the cuts mostly affecting engineers working on technology and enterprise-related efforts. The company previously cut six percent of roles and indicated further global layoffs into 2026 to achieve at least $100 million in annual spending reductions. Peloton has introduced new hardware with Peloton IQ AI features, including Bike, Bike Plus, Tread, Tread Plus, and Row Plus models that offer real-time form feedback, workout analysis, and AI-generated workout routines. Subscription prices have increased while sales remain on a persistent downward trend and initial AI-gear sales have been sluggish.

Read at The Verge