Peloton has laid off 11% of its workforce as the fitness equipment company faces falling sales and a shrinking membership base.
“As part of our previously announced $100 million cost savings plan, we shared that we’d be optimizing indirect spend, reshaping our teams and, in some cases, the locations where we work,” a company spokesperson said in a statement. “Our recent actions evolve our operational footprint and create efficiencies that enable us to continue investing in areas that support our return to growth.”
The company declined to comment on what departments were affected or whether impacted employees received severance or other benefits. The spokesperson said the company is “committed to supporting them through this transition."
Peloton announced its restructuring plan in August, which aims to generate $100 million in cost savings by the end of fiscal year 2026. The plan entails reducing the size of its global team, cutting indirect spend and relocating some work. At the time, CEO Peter Stern, who took the helm just over a year ago, said the move was “necessary for the long-term health of our business.”
The company has faced a number of challenges in recent years after experiencing a surge in demand at the onset of the pandemic. Revenue has continued to fall — most recently by 6% in Q1 — as its membership base declines. Peloton has also seen a number of C-suite changes in recent years, particularly in its chief marketing officer role — a position that has seen four executive appointments in just five years.
Ahead of this past holiday season, the company raised membership prices across all tiers as it revamped its entire product lineup.
