GameStop Supposedly Lets Go of 50 Regional Leaders
Several GameStop employees have taken to Reddit and Twitter to detail the massive layoffs that are happening as a result of GameStop’s “realignment strategy.” GameStop is planning to expand the size of its regions and districts, thus reducing the number of field leaders needed to run the organization. Based on an email from GameStop’s corporate headquarters, over 50 regional, district, HR, and LP leaders have been impacted by the restructuring efforts, and will soon be losing their jobs, if they haven’t already.
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“As part of our continued GameStop Reboot transformation initiative, a dedicated team, including the Retail Vice Presidents, HR, LP. and the U.S. Store Operations leadership team, have been working diligently to realign our current field regions and districts in an effort to reduce our cost structure and build efficiencies into our field leadership organization so that we can reinvest in the business,” the email states.
GameStop reported a total net income loss of $488.6 million in Q3, compared to its net income of $59.4 million. It’s likely that these financial troubles are a direct result of the shift away from physical games. The company has been trying to turn things around though despite the adversity by testing a number of new strategies including a loyalty service, a video game rental service, collectibles-themed locations, and most recently, customer-centric store layouts.
“These decisions are not easy,” the email reads, “but necessary to help us reduce costs to enable investment in revenue-driving initiatives that will help grow the business once again.”