Wed. Sep 28th, 2022
Brightly lit GameStop storefront.

Brightly lit GameStop storefront.

GameStop, the major video game retailer, has announced layoffs for 120 of the company’s employees, representing a 14% reduction in “the company’s total employee base, both at our headquarters and a few other offices.”

“While these changes are difficult, they were necessary to reduce costs and align the organization more closely with our efforts to optimize the business to meet our future goals and drivers of success,” GameStop said in a statement. “We recognize that this is a difficult day for our company and especially for the employees involved. We appreciate their dedication and service to GameStop and are committed to supporting them during this transition period.”

It’s unclear if that number includes staffers from GameStop magazine Game Informer, a lot from whose took om Twitter Today until share news of their unexpected laid off. Of the 19 staffers at the top of the magazine, at least six were fired today, including: Editor-in-Chief Matt Bertz

“I appreciate all the love,” Game Informer editor-in-chief Andy McNamara tweeted today. “I see it. I feel it. I try to get things right with my people. I love Game Informer, its people and its readers more than any company, and I’ll tackle any issues when I can, but for now I need to focus on my GI family.”

Can the sinking ship be lifted?

The layoffs continued a series of bleak news for GameStop, which still has more than 5,000 storefronts in 14 countries. After announcing in January it hadn’t found a buyer, the company posted a huge quarterly loss in April, sending its stock plummeting to its lowest point since 2005. Since then, GameStop has seen its CFO and COO leave. laid off of 50 “field leaders” and closed its subsidiary ThinkGeek collectibles.

At the time of writing, GameStop stock is trading at $3.42. That’s 17% less than a month ago, almost 80% compared to a year ago and almost 94% since the peak at the end of 2013.

In June, GameStop’s new CEO George Sherman outlined a three-point plan to improve the situation at the struggling retailer. Point one in that plan was to address “selling, general and administrative expenses,” which appear to be the target of these recent layoffs. The other two points related to “optimiz[ing] the current business’, including through better prices for used games; and ‘develop[ing] new revenue streams for the future,” including increased engagement with digital sales and “immersive interactive experiences,” whatever that means.

Those kinds of changes may not be enough to save GameStop from the seemingly inexorable move to downloads and Internet streaming that other brick-and-mortar media retailers like Suncoast and Tower Records have been claiming. In any case, we can imagine that the GameStop belt tightening will get even more drastic before a possible turnaround starts to show up.

By akfire1

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