Peloton has announced the appointment of its new chief executive officer. Peter Stern, who has a background as a co-founder of Apple Fitness+ and a current executive at Ford, is set to take over leadership of the fitness technology company starting January 1. As part of this transition, Karen Boone, one of the interim CEOs currently in place, will maintain her role as chief executive until the end of the year, according to a statement from the company.

Following this news, the shares of the New York-based company surged by over 20% on Thursday. This announcement comes approximately six months after Barry McCarthy resigned from his position as CEO, a move that coincided with a significant restructuring and cost-reduction strategy that involved the layoff of hundreds of employees.

During the early stages of the COVID-19 pandemic, Peloton experienced a surge in sales for its exercise bikes, as many consumers sought out home workout options. However, this growth has dwindled as restrictions began to lift, leading to substantial losses reported by the company in recent years.

For the first quarter, Peloton reported a loss of $900,000 despite generating $586 million in revenue, which was better than Wall Street forecasts. To improve its financial standing, the company has been focusing on rebranding itself. It aims to shift from being perceived as a purveyor of high-end fitness equipment to a more accessible health technology provider. Recently, Peloton announced plans to offer its premium stationary bike at a discount through Costco for the holiday season. Additionally, in 2022, they made their products available on Amazon in the United States.

In his first statement regarding his new role, Stern described joining Peloton as “a dream come true” and expressed his eagerness to elevate the company and its members to new heights. Since becoming a member of Peloton in 2016, Stern has held various leadership positions, currently serving as the president of Ford Integrated Services, and has previously worked at Time Warner Cable and Apple.

As part of the leadership changes announced this week, Chris Bruzzo, who has also been co-interim CEO alongside Boone, will resign from his role on Friday. Despite stepping down, both Bruzzo and Boone will continue as members of Peloton’s board of directors, and Stern is anticipated to join the board as well.