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GameStop dismisses 120 employees while stocks continue to fall



  Brightly lit GameStop storefront.

Brightly lit GameStop storefront.


The big video game retailer GameStop has announced redundancies for 120 company employees as in some other offices. "

"Although these changes are difficult, they have been necessary to reduce costs and better align the organization with our efforts to optimize the business to meet our future goals and success factors," said GameStop's statement A difficult day for our company and especially for the employees concerned. We thank you for your commitment and service to GameStop and are determined to assist you in this transitional period.

It is not clear whether this number includes employees of Game Inform's Game Informer magazine, many of . Wen took Twitter today on news of their unexpected layoffs. Of the 19 employees listed in the magazine's imprint, at least six were released today, including editor-in-chief Matt Bertz .

"I appreciate all the love," tweeted Andy McNamara, editor-in-chief of Game Informer today. "I see it, I feel it, I try to make things right with my people, I love Game Informer, its people and its readers more than any other company and I will tackle all the problems, if I can, but for Now I have to focus on my GI family. "

Can the sinking ship be raised?

The layoffs continue a series of bleak news for GameStop, which still maintains well over 5,000 stores in 14 countries. After announcing in January that it had not found a buyer, the company posted a massive quarterly loss in April, bringing the stock to its lowest level since 2005. Since then, Gamestop has left its CFO and COO, layoffs of 50 "field leaders" and closure of the ThinkGeek subsidiary for collectibles.

Currently the GameStop share is listed at $ 3.42. That's 17% less than a month ago, nearly 80% less than a year ago and nearly 94% less than the end of 2013.

In June, GameStop CEO George Sherman unveiled a three-point reboot plan Things around the struggling retailers. Point one in this plan was the "distribution, general and administrative costs" that seem to be the target of these recent layoffs. The other two points concerned "Optimiz [ing] the Current Business", partly due to better prices for used games; and "unlocking new revenue streams for the future," including a greater exposure to digital distribution and "immersive interactive experiences," whatever that means downloads and Internet streams claimed by other physical media retailers, including Suncoast and Tower Records. In any case, we can imagine that putting on the GameStop belt gets even more drastic before a possible turnaround begins.


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