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GameStop Commences Fresh Round Of Workforce Reduction

Image Source: 1take1shot / Shutterstock

Despite being a persistent subject of meme stock frenzy since the previous year, GameStop, the video game retailer, has experienced a gradual decline in its market worth over time. A specific area of their operations that has been showing poor performance is their ventures into the realm of cryptocurrencies, including the development of a proprietary blockchain wallet. Consequently, GameStop has opted to implement a new series of staff layoffs.

The upcoming terminations will primarily impact roles in GameStop’s crypto-related initiatives, as well as certain positions within its corporate division. In an email to the employees, obtained by Kotaku, CEO Matt Furlong stated, “Now that we are transitioning from the reconstruction phase of our restructuring, GameStop is well-positioned to pursue profitability in the short term and sustainable expansion in the long run.”

“We have recently wrapped up multiple projects that constituted the initial phase of our transformation and have made the business more operationally efficient,” Furlong added. “Moreover, we have gained clearer insights regarding the optimal level of corporate staff required to achieve our profitability and growth objectives. These factors influenced the decisions made across the organization.”

This marks the third instance of significant staff terminations that have impacted GameStop’s key departments this year. The organization recently experienced a considerable loss in market valuation following the collapse of the crypto exchange FTX, to which GameStop had established numerous connections in the realm of cryptocurrencies.

Image Source: 1take1shot / Shutterstock

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