The home fitness giant Peloton, which once shone during the pandemic, is once again caught in a public controversy. Despite the company's high-profile announcement last year to transition to artificial intelligence and launch a series of high-end devices equipped with AI cameras, this strategy seems to have failed to impress consumers. This week, Peloton announced the layoff of 11% of its staff as part of its plan to cut $100 million in expenses.
Looking back at Peloton's development, its "irrational prosperity" during the early stages of the pandemic masked long-term growth stagnation. As global fitness enthusiasts returned to physical gyms, Peloton's subscription numbers dropped by more than 100,000 in 2025, and its stock price plummeted accordingly. To reverse this trend, the company tried to support higher product pricing by leveraging AI technology, launching hardware with motion tracking capabilities powered by AI cameras. However, the high unit price and rising living costs have deterred potential buyers, resulting in poor sales for this product line.
AIbase reported that Peloton's current difficulties reflect common issues faced by many tech companies when applying AI. Although companies claim AI can optimize team structures and improve efficiency, research shows that 95% of generative AI business attempts have failed to achieve rapid revenue growth. For Peloton, external critics argue that the company has become overly focused on hardware manufacturing, neglecting its core competitiveness as a "content and subscription platform."
Due to the cold market response, analysts are concerned about Peloton's decision to raise prices, fearing it may further alienate its core user base. On social media, many loyal users have also expressed dissatisfaction, arguing that the company should focus on star coaches and content quality rather than forcing users to spend more through flashy AI hardware. Currently, the layoffs have affected several core teams, and Peloton's transformation path remains unclear.
Key Points:
📉 Deep in the Layoff Winter: Peloton announced this week that it will cut approximately 11% of its positions, aiming to reduce costs by $100 million through team restructuring and optimizing work locations.
🤖 AI Transformation Met with Cold Response: Although it launched expensive new hardware integrated with AI cameras, the market sales fell far below expectations, proving that relying solely on the AI concept is difficult to support a premium price.
⚠️ Risk of Misalignment: Users and analysts point out that the company should return to its core positioning as a "content and subscription platform," rather than blindly pursuing hardware sales and increasing prices through AI gimmicks.
