GameStop eliminated more than 120 corporate staff positions, part of a drive by the video-game retailer to slash costs amid falling sales and a loss of customers to online spending.
The cuts amount to 14% of the retailer’s headquarters posts, according to a statement Tuesday, and mark the latest retrenchment by the struggling video-game chain.
“While these changes are difficult, they were necessary to reduce costs and better align the organization with our efforts to optimize the business to meet our future objectives and success factors,” the company said in the emailed statement.
Shares of the retailer have plunged 73% this year, a decline that underscores investors’ deepening pessimism over the company’s prospects. In June, new Chief Executive Officer George Sherman halted the company’s 38-cent quarterly dividend. GameStop followed up by repurchasing 12 million shares in a dutch auction.
Sherman, a retail veteran, also named four senior managers to be part of his turnaround team, including a new chief financial officer and chief merchandising officer. Sherman said he wants to unclutter stores and focus on the top-selling products. He’s also looking for ways to increase the company’s digital business and host more events in stores.
Shares of Grapevine, Texas-based GameStop closed at $3.42 in New York, up 1.2%. The job cuts were announced after markets closed. GameStop finished its January fiscal year with 16,000 full-time employees.
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