Marketing in the News: Peloton Slashes Marketing Spend and Drops Another CMO

 

I came across this article from Marketing Week titled "Peloton slashes marketing spend as another CMO departs" and it instantly grabbed my attention. I’ve been interested in Peloton ever since we talked about the company in class. Their rise during the pandemic was wild, and this recent shift in strategy felt like a big wake-up call. Seeing them cut their marketing budget by nearly 40% and lose another CMO just made me wonder what’s really going on behind the scenes.

So here’s the rundown: Peloton slashed its marketing and advertising budget by $51.8 million (that’s 37% down from last year). This happened during the first three months of 2025. Oh, and they also lost their third CMO since 2020. Yeah. Third. That’s not a great look for consistency or brand leadership. According to the article, Peloton says it’s all part of their bigger plan to shift focus toward profitability and sustainability instead of burning cash on flashy ads.

Peloton’s value proposition has always been about delivering a high-end, connected fitness experience right at home. It’s not just about the equipment. It’s about the content, the instructors, and the community. They made working out feel premium and personal, and they built a whole culture around it. But now that people are going back to gyms and craving in-person experiences again, that original value proposition is kind of wobbling.

This marketing shake-up matters because it shows Peloton is trying to evolve with the times. The pandemic boom is over, and they know it. They’re shifting away from aggressive ad campaigns and leaning more into organic growth, retention, and possibly brand community. They’re trying to stay relevant while spending less. And honestly, that’s not easy when you’re competing with Apple Fitness+, local gyms, and even influencers running fitness content on TikTok for free.

One of the big challenges they’re facing is that they can’t keep throwing money at the problem. Their leadership instability is also kind of alarming. When you’ve got that much turnover in marketing, it’s hard to have a solid, long-term brand strategy. Plus, they have to win back trust and energy from customers who might’ve fallen off the Peloton train (literally and figuratively).

What makes this whole situation unique is that they’re doing the opposite of what a lot of other brands are doing. Instead of launching some big campaign to stay top-of-mind, they’re pulling back. That’s a huge risk, but maybe also a sign of maturing. If they can find creative, low-cost ways to engage their current users and build loyalty, they might be able to pull off a quiet comeback.

If I were the marketing manager, I’d focus hard on user-generated content and referral programs. Peloton has a passionate base. They just need to feel like they’re part of the brand story again. I’d also double down on community events (virtual and local) and maybe rebrand some of their instructors as influencers. Let the hype come from inside the house.

This article reminded me how fast things shift in marketing. Just a year or two ago, Peloton was everywhere. But times change, and brands have to be flexible. Cutting marketing spend might seem like a bad move, but if they play their cards right, it could be the reset they need.

Links:

• https://www.marketingweek.com/peloton-slashes-marketing-cmo/

• https://www.onepeloton.com/