Texas Based GameStop Planning Job Cuts

Larry Lease

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GameStop announced the firing of CEO and a round of employee cuts.Max Fray/Unsplash

GameStop Corporation has fired Chief Financial Officer Mike Recupero, leading to shares tumbling 9% in extended trading as reports are surfacing of planned job cuts. According to Dallas News, GameStop's chief accounting officer Diana Jajeh will replace Recupero. The struggling retailer is making a round of cuts that will be felt across the company.

Dallas News reports that the company memo highlights the company's changing commerce business and its launch of a blockchain group. GameStop shares fell to $120.61 in trading. The retailer announced a four-for-one stock split on Wednesday. GameStop has not publicly responded to the news of the firing or planned job cuts. The cuts also include at their online magazine Game Informer office.

Dallas News reported that Ryan Cohen, chairman of GameStop has been working to revive growth at the struggling GameStop, which has slowed as gamers switch from buying physical games to digital games. The company has launched a digital asset wallet, which will give gamers the ability to store, send and receive NFTs and cryptocurrencies without leaving their web browser.

According to Dallas News, GameStop has been bogged down by supply chain issues and a struggling business strategy. Over the past few years, it has attempted multiple business concepts earning mixed reactions from customers and investors. With Cohen in charge, GameStop expanded its offering, made several new hires including CEO Matt Furlong and CFO Nir Patel, and improved its logistics. The job cuts come as GameStop is forced to work through a transition from physical media to digital content.

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I specialize in crime, entertainment and political stories. I have spent eight years as a freelance writer and journalist.

Dallas, TX
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