In an attempt to boost its profits, GameStop has reportedly decided to lay off a number of employees, including a company executive.
The chain stores that are often stormed by the constant demands for PlayStation 5s (also in high demand on Amazon) are experiencing a particularly difficult time.
Nevertheless, it is also true that GameStop has repeatedly come close to crisis in recent years, losing a lot of money and placing investors in a really difficult situation to manage.
For that matter, in June this year, employees turned against the company for their treatment, urging gamers to buy elsewhere.
Now, as reported also by Game Rant, there has been more bad news concerning the well-known video game retailer, and this time in the form of more layoffs that will be affecting employees of GameStop and Game Informer, its monthly video game magazine run by the company since 2000.
It is currently unclear how many positions are being cut, but it seems that the number is quite large. The goal of this staff reduction, according to CEO Matt Furlong, is to ‘sustain profitability’ such that the company is reportedly planning to invest more in its store managers and employees, although it is not clear what this means.
Such layoffs come after GameStop hired more than 600 employees between late 2021 and early 2022, so there is an assumption that many of the laid-off employees had only recently joined the company.
One other major figure whose dismissal from GameStop will take immediate effect is chief financial officer Mike Recupero, who is being replaced by chief accounting officer Diana Saadeh-Jajeh.
Ironically, in the aftermath of the announcement of the layoffs, GameStop’s stock value fell overnight. Remaining on the subject, GameStop was also the subject of another sensational case, namely the spike in shares due to the collective movement, which is soon to be even made into a real movie.
Discussion about this post