Peloton is cutting 400 employees in its latest restructuring, targeting $100 million in savings. The connected fitness company has been shrinking continuously since its pandemic peak, when demand for at-home exercise equipment collapsed as gyms reopened.
Peloton's trajectory is a cautionary tale about building permanent infrastructure for temporary demand. The company hired aggressively during COVID, expanded manufacturing, and invested in content production for a market that evaporated. The 400 cuts bring the workforce to roughly 3,200 from a peak of over 8,000.