Plus   Neg

GameStop Eliminates 120 Staff As Sales Drop


Video game retailer GameStop Corp. laid off more than 120 employees, or nearly 14 percent of the total workforce at its corporate headquarters and at some other offices, according to reports.

The layoffs also include senior editorial staff at Game Informer, the company's print and digital publication. Some of the senior staff at Game Informer took to Twitter to announce about their layoffs.

Reports quoted a GameStop spokesperson as saying that the action was required in order to cut costs and optimize the business to meet future business objectives.

The video game retailer has been witnessing declining sales in recent months. It has been hurt by the rapidly changing retail landscape and the increasing customer shift towards digital sales.

In June, the company had reported a fall in profit for the first quarter from the year-ago period, while revenues declined 13 percent. New hardware sales, including the Microsoft XboxOne and PlayStation 4 console sales, decreased 35 percent.

GameStop is also cutting its quarterly dividend in an effort to strengthen its balance sheet and provide increased financial flexibility.

The company projects its fiscal year 2019 sales to decline 5 percent to 10 percent.

Earlier this year, the retailer had appointed George Sherman as its new chief executive officer, succeeding Shane Kim. The company also said it has terminated efforts to pursue a sale of the company due to the lack of available financing on terms that would be commercially acceptable to a prospective acquirer.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The Federal Trade Commission (FTC) is in the process of sending out refund checks to consumers who were allegedly misled by Office Depot, Inc. and its software provider Support.com, Inc., into buying computer repair products and services. Out of $34 million, being the total amount of checks, Office Depot paid $25 million and Support.com paid $10 million as part of 2019 settlement. Gap Inc. partnered with fashion resale platform thredUP to facilitate the exchange of secondhand cloths. The retailer in a blog post said its customers can bring secondhand clothes in exchange for shopping credit that can be redeemed at Gap, Banana Republic, Athleta, or Janie and Jack. Customers who redeem their credits at Gap brands will receive an additional 15 percent payout bonus. Coca-Cola Co. (KO) on Friday reaffirmed its guidance for the full-year 2020 and provided an update on the expected impact from COVID-19 on first quarter 2020 results, ahead of its presentation at the Consumer Analyst Group of New York (CAGNY) Conference. For fiscal 2020, the company continues to project...
Follow RTT