Gamestop Replaces CFO and Plans on Reducing Staff

GameStop Corporation has reportedly replaced Chief Financial Officer Mike Recupero and is currently reducing its staff after its shares have gone down 5% in extended trading.

Its current Chief Accounting Officer, Diana Jajeh is set to take over the position of Chief Financial Officer, effective immediately. In GameStop’s security fillings, Recupero is not entitled to severance payments outside of his offer letter from the company.

According to a memo released by the company, GameStop is also set on making a “number of reductions” throughout its parent company and Game Informer, its online magazine.

“After making more than 600 corporate hires in 2021 and the first half of 2022, we have a stronger understanding of our transformation needs.” says its Chief Executive Officer Matt Furlong. “This has positioned us to right-size headcount across several corporate departments,” he adds.

GameStop had hired Amazon employees to move its target from physical stores to e-commerce. As stated by Ars Technica, 90% of its newer games are only available by downloading digitally. The CEO, Chief Growth Officer, and now former CFO were all previously employed at Amazon.

Shares of GameStop decreased to a low of $120.61 in extended trading. The company then gained 15% during regular trading and closed at $135.12 after GameStop reported a four-for-one stock split last Wednesday.

In the past few years, the company has been dealing with supply chain issues and throwing out several business concepts with mixed reactions from customers and investors. Under the leadership of Cohen, Gamestop has been making changes in its logistics, e-commerce, and technology experience and expanded its offerings.

Source: Bloomberg