GameStop fires CFO, announces layoffs as part of aggressive turnaround plan
A screen displays GameStop’s logo and business information on the floor of the New York Stock Exchange (NYSE) on March 29, 2022.
Brendan McDermid | Reuters
GameStop has fired its chief financial officer, Mike Recupero, and is making staff cuts across all departments as part of an effort to turn the video game retailer around, the company announced Thursday.
Recupero, who joined the company about a year ago, was “fired because he wasn’t culturally appropriate” and was “too indifferent,” a person familiar with the matter told CNBC. . He was kicked out by GameStop President Ryan Cohen, the person said.
Diana Jajeh, the company’s chief accounting officer, will become chief financial officer.
The layoffs, which were announced in a memo to employees obtained by CNBC, relate to the corporate side of the business rather than its stores, the person said, and are intended to “reduce bloat” as GameStop invests in more other areas.
CEO Matt Furlong explained the changes in the memo to employees and said the company needed to take bold steps to invest in its digital future.
“That means eliminating excess costs and operating with an intense owner mentality,” he said. “Everyone in the organization needs to become even more active and take on an increased level of accountability for results.”
Shares of the company fell more than 6% in extended trading after gaining more than 15% in the regular session.
Here is the full memo:
Change will be a constant as we scale our business and launch new products through our blockchain group. After investing heavily in people, technology, inventory and supply chain infrastructure over the past 18 months, our goal is to achieve sustained profitability. This means eliminating excess costs and operating with an intense owner mentality. Everyone in the organization needs to become even more active and take on an increased level of accountability for results.
That said, I’m reaching out to you today to share three organizational updates:
1. Having hired over 600 companies in 2021 and the first half of 2022, we have a better understanding of our transformation needs. This allowed us to adjust our workforce in several departments of the company. Today we’re making a number of reductions to help us keep things simple and run nimble with the right talent in place.
2. We will invest significantly in our store managers and field staff, who play a vital role in meeting the needs of our customers. These people are, in many ways, the heart of GameStop. We will share details regarding this investment in the coming weeks.
3. Mike Recupero, who held the position of Chief Financial Officer since last June, is leaving us. Diana Jajeh, who has been our accounting director and has a strong institutional knowledge of the business, has been appointed chief financial officer.
These changes will allow us to operate profitably as we execute our strategy of continuing to grow sales in our commerce business and launch new products that empower customers in the digital asset and web3 gaming verticals. I trust the team we have in place moving forward, and thank you once again for your continued dedication and focus.
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