Peloton, the struggling New York-based fitness tech company, announced today that it plans to cut roughly six percent of its workforce in an effort to save costs and turn the company around. Additionally, the company’s new CEO, Peter Stern, told investors that the company would be expanding beyond its cardio roots and into the general health and wellness space.

“This is not a decision we came to lightly, as it impacts many talented team members, but we believe it is necessary for the long-term health of our business,” wrote Stern in a letter to shareholders published along with the company’s most recent quarterly earnings report.

As of last summer, Peloton had about 2,300 employees, so these latest cuts could affect about 140 workers. The company previously laid off 15% of its workforce in May 2024 when it got rid of its previous CEO.

Despite swinging a profit in the most recent quarter, Peloton reported that its sales dropped 6% and are expected to fall even further this year.

Peloton launched in 2012 as a premium fitness brand, offering pricey exercise bikes, treadmills, and rowing machines with built-in screens that stream live and on-demand workout classes. The company really hit its stride during the covid-19 pandemic, when gyms were closed and people were scrambling for ways to stay active at home.

Unfortunately, that wave didn’t last. As life returned to normal after the pandemic, so did people’s workout routines outside the home. The company’s stock has dropped 95% from its early 2021 peak of nearly $170 a share to around $7 today.

Stern joined the company earlier this year after stints leading services teams at Ford and Apple. Today, he told investors that he sees the company moving beyond just cardio exercise.

“In our next chapter, we will build upon our leadership in cardio to support our Members’ entire wellness journey, accelerating our progress in strength and mobility and exploring new frontiers in mental wellbeing, sleep and recovery, nutrition and hydration,” Stern wrote in the letter.

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

He also added that AI could play a role in the company’s comeback.

Stern said that the company could leverage AI by linking its platform with users’ personal health tracking devices to offer more personalized insights, action plans, and recommendations.

Last week, Peloton also expanded one of Stern’s other initiatives — a new marketplace for users to resell their exercise equipment.

At the Bloomberg Tech conference in June, Stern said the new marketplace is a key part of Peloton’s turnaround strategy. He said the secondhand market was one of the most effective ways for the company to bring in new members.