GameStop fires CFO, announces layoffs

GRAPEVINE, Tex. (UPI) — Video game retailer GameStop fired its chief financial officer and announced a series of layoffs on Thursday.

The company publicly announced that it had terminated the employment of CFO Michael Recupero, with Chief Accounting Officer Diana Saadeh-Jajeh stepping into the role.

Saadeh-Jajeh, who served as interim CFO last year, will earn a starting annual salary of $200,000. In addition, she will be eligible for a “transformation bonus” in an aggregate amount of $1,965,000. This is according to a filing with the U.S. Securities and Exchange Commission reviewed by CNBC.

The company also announced layoffs in an internal email obtained by CNBC. Kotaku states in a report that said “reductions” were intended to “reduce bloat” and allow the company to operate more “nimbly.”

GameStop CEO to focus operations on e-commerce

“Change will be a constant as we evolve our commerce business,” CEO Matt Furlong wrote in the email. “[We will] launch new products through our blockchain group.”

Furlong continued that the company must take bold steps to invest in its digital future.

“This means eliminating excess costs and operating with an intense owner’s mentality,” he said. “Everyone in the organization must become even more hands-on and embrace a heightened level of accountability for results.”

Layoff focus on headquarters, Game Informer staff

The layoffs seem to focus on GameStop’s Grapevine, Tex., headquarters. However, it also appears to include some staff at video game magazine Game Informer, which the company acquired in 2000, Kotaku reports.

GameStop stock fell 5.61% in after-hours trading. However, it gained 15.06% during regular trading as investors react to the retailer’s board approving a 4-for-1-stock split.

Ryan Cohen, the founder of online pet goods retailer Chewy, was brought on to lead GameStop’s turnaround after it drew attention as a “meme stock” targeted by online traders.

He brought on new executives including Furlong and Recupero as the company has made more than 600 corporate hires since the start of last year.

Reporting by Daniel Uria

United Press International

+ posts

United Press International is an international news agency whose newswires, photo, news film, and audio services provided news material to thousands of newspapers, magazines and radio and television stations for most of the 20th century.

• United Press International

  https://www.heartlandnewsfeed.com/author/upi/

  Amazon to hire 250,000 workers for holidays
• United Press International

  https://www.heartlandnewsfeed.com/author/upi/

  14 dead after plane crashes in Amazon
• United Press International

  https://www.heartlandnewsfeed.com/author/upi/

  Coinbase to lay off more than 900 employees
• United Press International

  https://www.heartlandnewsfeed.com/author/upi/

  Samsung announces disappointing 3Q results