Peloton Layoffs: What’s Happening, Who’s Affected & Severance Rights in Canada

Peloton Interactive Inc. (Peloton), has eliminated approximately 11% of its workforce as part of a cost-cutting initiative, sources told Bloomberg News.

A spokesperson for the fitness technology company said the goal is to optimize spending by “reshaping our teams and, in some cases, the locations where we work.”

CEO Peter Stern reportedly informed staff of the job cuts on Jan. 30, 2026.

This page explains:

• What’s happening with Peloton layoffs
• Who’s most affected
• Whether a Peloton layoff is permanent
• How much severance Peloton employees in Canada may be owed
• What to do before signing a severance offer

Peloton Layoffs: A Timeline of Recent Job Cuts

The workforce reduction marks the third layoff at Peloton in recent years:

• August 2025:
  Peloton is eliminating approximately 6% of staff as part of a “cost restructuring plan.”
• May 2024:
  Around 15% of its Peloton’s workforce has been cut as part of a restructuring.

Who’s Affected by Peloton Layoffs?

Sources claim the latest round of Peloton layoffs mostly impacted engineers working on technology and efforts for enterprise customers.

The exact number of Canadian employees affected remains unclear. The company reportedly has dozens of workers in the country, according to LinkedIn.

Peloton is a provincially regulated employer — meaning most non-unionized employees are governed provincial employment standards, not the Canada Labour Code.

Is a Peloton Layoff Temporary or Permanent?

For non-unionized Peloton employees, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for Peloton to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for Peloton Employees

In Canada, non-unionized employees, including those at Peloton, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

In many cases, Peloton employees in Canada can be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and Peloton Layoffs

A wrongful dismissal occurs when employers, including Peloton, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• Peloton labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs don’t reduce Peloton’s legal obligations in Canada.

Laid Off at Peloton? Next Steps

If you’ve been laid off at Peloton:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

Peloton Layoffs: Frequently Asked Questions

How much severance can Peloton employees receive?

Up to 24 months — depending on age, service, and position.

Are Peloton layoffs permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does Peloton have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Can Peloton terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized Peloton staff?

No. Unionized Peloton employees must go through their union.

Lost Your Job at Peloton? Get Help Now

If Peloton has laid you off, or offered a severance/buyout package, get legal advice before you sign.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.