Peloton cuts jobs and focuses on members of the “entirely well-being trip” of members

Peloton, the New York -based fitness technology company in difficulty, announced today that it planned to reduce about six percent of its workforce in order to save costs and transform the company. In addition, the new CEO of the company, Peter Stern, told investors that the company would extend beyond its cardio roots and in the general space of health and well-being.

“This is not a decision to which we have reached the light, because it has an impact on many members of the talented team, but we believe that it is necessary for the long -term health of our company,” Stern wrote in a letter to shareholders published with the last quarterly report of society.

Last summer, Peloton had approximately 2,300 employees, so that these last cuts could affect approximately 140 workers. The company previously dismissed 15% of its workforce in May 2024 when it got rid of its previous CEO.

Despite swinging a profit in the last quarter, Peloton said that his sales had dropped by 6% and should fall even further this year.

Peloton was launched in 2012 as a premium fitness brand, offering expensive exercise bikes, treadmills and rowing with integrated screens that broadcast live training courses and on demand. The company really struck its stride during the 19 pandemic, when the gymnasiums were closed and people rushed for means to stay active at home.

Unfortunately, this wave did not last. While life returned to normal after the pandemic, people’s training routines outside the house also made routines. The company’s shares fell 95% compared to its peak at the start of 2021 of almost $ 170 per share at around $ 7 today.

Stern joined the company earlier this year after management sessions for service teams at Ford and Apple. Today, he told investors that he sees the company going beyond the cardio financial year.

“In our next chapter, we will rely on our cardio leadership to support the entire journey of the well-being of our members, accelerate our progress in strength and mobility and by exploring new borders in mental well-being, sleep and recovery, nutrition and hydration,” Stern wrote in the letter.

Stern told investors during a call on Wednesday that this could include more personalized training programs, new meditation and sleep characteristics and potentially nutrition -focused content.

He also added that AI could play a role in returning the company.

Stern said that the company could take advantage of AI by linking its platform with user health monitoring devices to provide more personalized information, action plans and recommendations.

Last week, Peloton also widened one of the other Stern’s initiatives – a new user market to resell their exercise equipment.

At the Bloomberg Tech conference in June, Stern said that the new market is a key element in the peloton recovery strategy. He said that the second -hand market was one of the most effective ways for the company to bring new members.