GameStop Corp. (NYSE: GME), a video game and gaming merchandise retailer, has announced laying off over a hundred employees at its corporate headquarters in Grapevine, Texas and its subsidiary Game Informer magazine in Minnesota. The layoffs appear to be part of GameStop CEO George Sherman’s three-point “Reboot” plan to turn things around at the struggling retailer. A statement from the company read: “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.”
According to the GameStop statement, the layoffs totaled about 14 percent of the company’s associate base at its headquarters, and included employees at some other offices. The layoffs apparently blindsided the staff at Game Informer, where nearly half of the editorial staff lost their jobs. The move comes just a few weeks after GameStop laid off dozens of regional managers.
GameStop has had a brutal year so far, struggling as digital distribution has grown to dominate gaming. The company tried to sell itself, but announced in January that it had failed to find a buyer. It then posted a massive quarterly loss in April, lost its CFO and COO, and closed its ThinkGeek collectibles subsidiary. Some are predicting that GameStop’s belt-tightening will have to become even more drastic before any signs of a potential turnaround begin to appear.
GameStop’s stock has plummeted over the past few years, falling to its lowest point since 2005 after its April earnings report. GameStop stock is currently trading around $3.42, down 17 percent from a month ago, and a nearly 80 fall from a year ago. The current share price is down almost 94 percent from its peak in late 2013. The company still maintains more than 5,000 storefronts across 14 countries.