American employers have been swinging the axe hard in 2025: over 806,000 job cuts have been announced so far this year, marking the bloodiest start to a calendar year since the dark days of 2020, when layoffs topped 1.8 million, according to data from outplacement firm Challenger, Gray & Christmas.
The leading culprit behind this has been government downsizing. A staggering 289,679 layoffs have been chalked up to the Department of Government Efficiency’s cost-cutting crusade. Close behind are broader economic headwinds, bankruptcies, tech disruptions, and plain old financial losses, according to CFO Dive.
Peloton is one of the latest companies to trim the fat…again. It has announced it needs to cut 6% of its workforce.
Despite a return to profitability in its latest quarter, the connected fitness brand says it’s still burning too much cash to fuel long-term growth. Operating expenses clocked in at $298.5 million for Q4 (down 20% year-over-year), but that’s still too steep for CEO Peter Stern, who’s now focused on pivoting the company “beyond cardio” into strength training and wellness.
Peloton said it needs to cut payroll because operating expenses remain too high, “which hinders our ability to invest in our future.”
The company did post a rare win of a net income of $21.6 million in Q4, compared to a $30.5 million loss a year prior. Net debt has also shrunk by 43% year-over-year. But it’s not all celebratory rides and endorphin highs.
Last year, Peloton ousted CEO Barry McCarthy after less than two years, amid a sweeping effort to slash 15% of its global workforce.
