On Thursday, Peloton stock dropped almost 10% following the announcement of 400 job cuts and the departure of CEO Barry McCarthy, who took the position in 2022. Karen Boone and Chris Bruzzo will serve as interim co-CEOs until the company completes its search for McCarthy’s replacement.

In its quarterly earnings report released on Thursday, the at-home fitness company reported lower revenues and losses. The company’s fiscal third-quarter revenue was $717.7 million, down from $748.9 million a year ago. Its net loss narrowed to $167.3 million, or 45 cents per share, from $275.9 million, or 79 cents a share, a year earlier.

When gyms and fitness centers were closed during the pandemic, Peloton bikes were popular as a means of exercising at home. The company, however, has struggled to sell its products in the post-pandemic era.

Peloton’s strategy of offering a free subscription to attract new users failed to convert them into paid subscribers, and it had to drop the idea. 

Last year, the company partnered with the fitness apparel brand Lululemon to integrate Peloton’s content into Lululemon’s exercise app. As part of the collaboration, Lululemon became Peloton’s primary athletic apparel partner. The strategy failed to save Peloton from losses, and currently, Lululemon itself is suffering from a decline in sales.