(Reuters] – Peloton Interactive Inc stated Tuesday that they would be replacing their chief executive officer. They also plan to reduce jobs and appoint additional board members, as the company struggles with waning demand.

John Foley was the co-founder and CEO of exercise bikes maker. Foley will now be the executive chairman.

Barry McCarthy was the ex-chief financial officer at The University of Texas. Spotify Technology From Wednesday, SA (NYSE 🙂 and Netflix Inc. (NASDAQ 🙂 will assume the helm.

Blackwells Capital was angry at Foley as the company’s slow growth has led to a valuation of $52 billion.

His removal was demanded by the investment firm, which even called on the company’s sale. Foley blamed the stock’s performance on “gross misconduct”, Foley’s lack of decision-making skills and his inability to establish credibility.

However, analysts have suggested that the dual-share structure of the company may act as a barrier to potential takeovers.

Last week, Reuters reported Peloton’s (NASDAQ:) interest has been expressed by potential buyers.

Premarket trading saw shares of the company fall 9% on Tuesday. Following reports about the buyout interest, shares had gained around 21% by Tuesday morning.

Peloton sales boomed in the COVID-19 lockdown, when many people purchased home-fitness equipment. However, Peloton’s fortunes started to decline as more people got vaccinated and gyms were reopened. Competitors also offered better products.

The company indicated in November that the demand for treadmills and exercise bikes was slowing and that its market capitalization has dropped to $9 billion.

Peloton said that the company will reduce approximately 2800 positions and affect 20% of corporate jobs.

Blackwells called on the board of Foley to step down and offer Walt a purchase. Disney (NYSE:) Co, Apple Inc (NASDAQ:), Sony (NYSE: ) Group or Nike Inc (NYSE:).