DECEMBER 8, 2022 — MORE LAYOFFS
GameStop has announced another round of layoffs due in part to inflation and weakened consumer confidence about the market.
CEO Matt Furlong noted, “Now that we are emerging from the rebuilding phase of our transformation, GameStop has a strong foundation from which to pursue profitability in the near-term and sustainable growth over the long term. As part of this process, the company came to a realization about the right level of corporate staff required to reach its profitability and growth goals, and is making these cuts as a result.”
JULY 8, 2022 — PAIN ON THE WAY
Chief Financial Officer Mike Recupero is leaving amid company-wide job cuts that will impact the parent company and online magazine Game Informer. an online magazine.
JANUARY 28, 2021 — THE REVOLUTION, PUSHBACK AGAINST HEDGE FUNDS. WAS GAMESTOP GIVEN A NEW LEASE ON LIFE?
Hedge funds and professional investors were betting that GameStop stock was going to zero and they could make “big money” in the process by selling short—selling stock they borrowed for a fee or using various options, hedged and unhedged, to trade.
With massive negative publicity in the mainstream media, they were slowly crushing the stock — HOPING TO RETURN THE STOCK THE BORROWED STOCK THEY SOLD AT A HIGHER PRICE WITH STOCK THEy PURCHASED AT A LOWER PRICE — THUS POCKETING THE DIFFERENCE.
A number of individuals, mostly millennials, got together on a social media platform known as Reddit and decided to purchase GameStock stock and defy the hedge short-sellers — massively raising the price.
Unfortunately, more than 140% of the existing GameStock was leveraged. So as the price rose, those who held options that required that the price drop found they were worthless — or those who needed to cover their short sales at rising prices sold their stock for higher and higher prices, the stock hyperinflated and the hedge funds lost massive amounts of money and the individual players had a nice payday at their expense.
However, this is what is supposed to happen in favor of the big investors — with the little guy taking a bath. This phenomenon so concerned the financial institutions, stock exchanges, and the big investors that the government, and the social media platforms they are now exploring ways to, once again, protect the big guys.
To be noted: nothing about GameStock really changed except the price of its stock. If management did not cash out, they might be able to use their newly-inflated stock to boost their online presence or pivot.
SEPTEMBER 11, 2020 — AT LEAST 400 STORES WILL BE CLOSED BY THE END OF 2021
The company has increased the number of stores to be closed by 2021 to 400 due to revenue shortfalls. The company continues to struggle financially adding to employee stress.
AUGUST 22, 2019 — Original post…
Grapevine, Texas-based GameStop, a major video game and consumer electronics retailer, continues to struggle financially as consumers abandon brick-and-mortar stores for the convenience of online purchases, especially for downloadable products. In an attempt to further reduce costs, GameStop has laid off more than 120 corporate staff employees, including those in email marketing, inventory management, licensing, and other departments. Many of the job losses are said to have been associated with the company’s print and digital publication, Game Informer.
A company spokesperson noted, “As part of the previously announced GameStop Reboot initiative to transform our business for the future and improve our financial performance, we can confirm a workforce reduction was implemented impacting more than 120 corporate staff positions, representing approximately 14% of our total associate base at our company headquarters as well as at some other offices. 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. We recognize that this is a difficult day for our company and particularly for those associates impacted. We appreciate their dedication and service to GameStop and are committed to supporting them during this time of transition."
The company continues to struggle with major losses and a reported failure to find a white-knight buyer for the company.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
