In a bid to cut down expenses, Minneapolis-based Sleep Number Corp. on Wednesday said it has trimmed about 10% of its total workforce. That amounts to about 500 laid off in total.

In a Nov. 8 quarterly filing with the U.S. Securities and Exchange Commission, the company said the move is part of a plan to reduce operating expenses by as much as $50 million. The filing noted that layoffs occurred “across all areas of the organization, including in corporate and research and development functions.”

Notably, for the first time this year, Sleep Number reported a net loss in its third quarter, which ended Sept. 30. The company said it lost more than $2.3 million in the quarter. That compares to net income of just over $5 million a year ago. Net sales slipped year over year, too: In the third quarter, Sleep Number reported sales of $472.6 million versus $540.5 million a year ago.

Sleep Number did report positive net income for the first two quarters of 2023, though it logged a year-end net loss in 2022.

The company’s other cost-cutting measures include a plan to close 40 to 50 stores by the end of 2024 and slow down on new store openings. Sleep Number also plans to cut down on capital expenditures.

ln a statement issued Tuesday, Sleep Number’s chair, president, and CEO Shelly Ibach said she expects the restructuring initiatives to “result in a more durable operating model with improved profitability.”

“The third quarter was challenging for Sleep Number and the bedding industry as the consumer demand trajectory changed abruptly midway through the quarter,” she said. “We remain confident in our strategic direction and ability to deliver superior value creation over time.”

Meanwhile, facing pressure from a prominent shareholder, Sleep Number on Tuesday expanded its board with two new members. In September, Connecticut-based investment firm Stadium Capital Management sent a strongly worded letter to Sleep Number and criticized its board for “failing to hold management accountable.” Stadium Capital Management owns about 9% of Sleep Number’s shares.

Sleep Number’s new board members are Steve Macadam, chairman of packaging company Veritiv Corp.; and Hilary Schneider, former CEO of Shutterfly and current member of Getty Images Holdings Inc.’s board. Sleep Number now has a total of 12 board members.

CEO Ibach said the move is intended to “drive lasting shareholder value.”

And, as part of a newly announced “cooperation agreement” with Stadium Capital, Sleep number has established a new board committee tasked with reviewing the company’s use of capital.