Shares of the Grapevine, Texas, company were down 14% to $136.40 at last check.
Reuters reported that GameStop is looking for a successor to CEO George Sherman, who has been chief executive since April 2019.
GameStop's board is working with an executive headhunter on the CEO search, Reuters said, citing a source requesting anonymity.
Several GameStop directors are involved in the search and have spoken with potential candidates from the gaming industry, as well as the e-commerce and technology sectors.
GameStop did not immediately respond to a request for comment.
Former Chief Financial Officer Jim Bell and Chief Customer Officer Frank Hamlin are among the senior executives who have left the company in recent weeks.
The report comes on the same day that Ascendiant Capital Markets Edward Woo downgraded the Reddit-favorite stock to sell as digital sales of videogames rise.
The analyst said that the Reddit-fueled trading surge in GameStop is “likely to fade as digital threats increase."
The company in recent months saw its stock price jump as individual investors who participated in the subreddit WallStreetBets traded substantial amounts of its shares.
The Reddit/WallStreetBets investors fueled a rally that lifted the shares to as much as $483 in late January.
While Sherman has been credited internally with slashing costs and steering GameStop through the COVID-19 pandemic, Cohen and other board members view his years with bricks-and-mortar retail as less relevant to the planned digital transformation, Reuters reported.
The company recently said it planned to sell up to 3.5 million shares.