Peloton Interactive has eliminated roughly 11% of its workforce as the company pursues lower costs amid an ongoing turnaround, a person with direct knowledge of the situation said in a report published on Friday. The reductions are part of broader measures taken under the company's new leadership to stabilize financial performance.
The workforce cut is focused mainly on engineering staff supporting technology initiatives and enterprise-related efforts. Management informed employees of the decision on Friday, according to the account shared with reporters.
Company filings indicate Peloton had more than 2,600 employees as of June 30, 2025, in its annual report for fiscal year 2025. The staff reductions represent a significant contraction relative to that headcount figure.
The personnel moves come after the CEO, who assumed leadership last year, made substantial operational changes intended to improve the firm's financial position. Those steps included a reworked product lineup and increases in pricing for both hardware and subscription services - actions aimed at strengthening revenue and margins as the company attempts to reverse its prior performance trends.
Peloton did not immediately respond to a request for comment about the layoffs and the scope of the changes. The company is scheduled to release quarterly earnings next week, an event that will provide updated information on its financial trajectory and the impact of recent strategic choices.
Market reaction to Peloton's struggles has been notable. The stock is down more than 9% so far this month, following a nearly 30% decline during the prior year. Investors will be watching upcoming results and management commentary for signals on cost trajectory, subscription trends, and progress on enterprise initiatives.
The reduction of engineering roles may have implications for Peloton's pace of technology development and enterprise offerings, although details on specific projects or timelines for product roadmaps were not disclosed in the report. Likewise, the full financial effect of the headcount reduction will depend on severance, restructuring charges, and how the company reallocates or reduces ongoing operating expenses.
Contextual note: Information in this article is based on the account reported Friday by a person with knowledge of the decision and on Peloton's public filing showing headcount as of June 30, 2025.