GameStop Hit With Massive Layoffs

GameStop has laid off an undisclosed number of employees, including those who work at gaming publication Game Informer which is owned by the retailer. GameStop has been struggling quite a bit over the last decade as many people have transitioned to buying video games digitally as opposed to physically. The retailer has still been a reliable place to purchase the somewhat scarce PlayStation 5 and Xbox Series X consoles, but generally, it has been an uphill battle. The company was in the news a lot in 2021 after it had a bit of a resurgence thanks to an absurdly large spike in its stock price, which motivated the company to try new things such as investing in NFTs and re-think its business strategy.

Nevertheless, according to journalist Stephen Totillo, GameStop has announced it is laying off a variety of employees following a 4 for 1 stock split, labeling it as "a number of reductions". It's believed that it isn't an insignificant number of layoffs, but the total number has not been confirmed. Game Informer staff have once again been affected by the layoffs after experiencing a similar situation in late 2019. GameStop CFO Mike Recupero has also left the company and will be replaced by CAO Diana Jajeh. GameStop reportedly opened its company email by highlighting its efforts with its "evolving commerce business", in reference to new blockchain and NFT operations. The gaming retailer is also planning to invest in store leaders and "field employees" following 600 corporate hires in 2021. 

BREAKING: GameStop CFO out, layoffs across company, including at GameStop proper and Game Informer. Unclear how hard people have been hit but doesn't sound small. "a number of reductions" as per company memo

— Stephen Totilo (@stephentotilo) July 7, 2022

As of the time of writing, no one at Game Informer has confirmed they have been laid off, but have expressed frustration with the decisions and canceled recordings of this week's podcasts. In 2020, Game Informer editor-in-chief Andy McNamara resigned and went on to go work at EA. Andrew Reiner filled the position and has helped the lead the team in the years since. The gaming magazine has continued its tradition of covering the industry via a variety of podcasts and its signature "cover stories", which typically highlight a major upcoming gaming release.