GameStop CFO Mike Recupero is heading for exit, and the gaming giant will lay off “a number” of employees as it strives to achieve “sustainable profitability”, the CEO wrote Matt Furlong in a memo to employees obtained by Axios.
Why is this important: Furlong said the move was aimed at cutting costs and moving towards an “intense owner mentality” for the failing company-turned-meme. GameStop has hemorrhaged cash while promising better days ahead.
Details: Recupero will be replaced as chief financial officer by chief accounting officer Diana Jajeh as the company continues to grow sales and launch new products, Furlong wrote.
- Furlong said the budget cuts come after the company hired more than 600 workers in 2021 and the first half of 2022. Executives are now in a better position to understand its “transformation needs”, he said.
- GamesStop to lay off employees of its Game Informer publication as well.
- The company will also make “significant investments” in store executives and employees, which Furlong called “the heart of GameStop.”
What he says : “Everyone in the organization needs to become even more active and embrace an increased level of accountability for results,” Furlong wrote in the memo.
- The CEO said he was confident with the team the company has going forward.