Grapevine-based GameStop Corp. fired chief financial officer Mike Recupero, sending shares down 9% in extended deals amid reports of company-wide job cuts.
The company said in a securities filing that Diana Jajeh, the current chief accounting officer, will replace Recupero, effective immediately. Recupero is not entitled to any severance package beyond what is stated in his offer letter from the company, according to the filing.
The struggling video game retailer is making a “number of staff reductions,” according to a memo obtained by Axios. The cuts will be felt in the parent company and in Game Informer, an online magazine.
The memo to the team highlights the evolution of GameStop’s business activities and its recent launch of a blockchain group, Axios reported.
GameStop shares fell to a low of $120.61 in extended trading. They had gained 15% in regular trading after the company announced a four-for-one stock split on Wednesday. GameStop did not immediately respond to a request for comment.
Ryan Cohen, who joined the board and became chairman last year, has tried to revive the beleaguered GameStop’s growth, which has slowed as gamers shifted from buying game discs to digital downloads. The company has become the poster child for so-called meme stocks, seeing volatile share price swings over the past year that have little to do with its business fundamentals. .
In June, the company launched a digital asset wallet that will allow gamers to store, send, and receive cryptocurrencies and NFTs without leaving their web browser. The wallet will be used in GameStop’s new NFT Marketplace, which is expected to launch in the current quarter. The wallet will be used in GameStop’s new NFT Marketplace, which is expected to launch in the current quarter.
Analysts are not entirely convinced that the company, which has struggled to grow from a retail store for physical games, will become a leader in the NFT market. The recent massive sale of cryptocurrencies has not helped the image of GameStop’s new initiatives.
GameStop suffered from a combination of supply chain issues and an opaque business strategy. Over the past few years, he has crafted a variety of business concepts with mixed reactions from investors and customers.
Under Cohen, the company expanded its offerings, improved logistics, and recruited a series of new hires with experience in e-commerce and technology. This includes CEO Matt Furlong, who came from Amazon.com Inc., where he ran the Australian business, and Nir Patel, who has been named chief operating officer.
Molly Schuetz, Bloomberg