After a major management reshuffle in May, there are unconfirmed reports that retailer GameStop is making some further cuts. The image was first shared on Imgur, and then gained wider visibility when shared by Youtuber MVG, it depicts an internal email describing the layoffs and the organization changes.
According to the leaked email, they previously had 18 regions across the US. These will be consolidated into a West, Northeast, and Southeast division. As a result of this consolidation, the email states “Unfortunately, with these changes, there are more than 50 field leaders who have been impacted and will be leaving the GameStop team. This includes regional, district, HR, and LP leaders.” It further states that “There is more work to be done to streamline the number of tasks for our field leaders and provide tools to support their daily activities. This work has already begun and will continue moving forward.”
As of now, this email’s contents are unconfirmed, but there is a thread on Reddit’s GameStop subreddit that appears to corroborate district level layoffs.
With new management in place, last month GameStop took steps to buy back 12 million shares of the company, amounting to “approximately 11.72% of GameStop’s Class A common stock issued and outstanding as of July 10, 2019”. On the same day, they also announced they were going to partner with design firm R/GA to overhaul its stores to better cater to their target market demographics, improve store layouts, and improve community engagement. All of this is part of a reboot initiative announced after Gamestop failed to find a buyer earlier this as a new CEO took over the struggling company.
TechRaptor has contacted GameStop with a request for comment. If we receive one, this article will be updated.
GameStop is going to have some tough and lean times ahead of it. As of this writing, their stock is sitting at $4.02, down from a five year high of $46.82 in November of 2018. Many retailers are having financial issues, but their management does seem to be taking what steps they can to turn the company around.