GameStop is getting in the holiday spirit with more layoffs

Two hands holding a smartphone displaying GameStop's logo and capitalist motto.

photo: SOPA image (Getty Images)

In the spirit of Christmas and the ruthless pursuit of Meme Share Shareholder Value, GameStop conducted its final round of layoffs on Monday ahead of the release of its new earnings report, which is due later this week. The cuts reportedly hit employees working on the Company crypto pushas well as a number of other departments in its corporate offices.

“Now as we emerge from the rebuild phase of our transformation, GameStop has a strong foundation to pursue short-term profitability and long-term sustainable growth,” CEO Matt Furlong wrote in an email to employees, a copy of which was obtained by kotakuBut the foundation apparently wasn’t strong enough to allow some employees to do without pink slips just a few weeks before the holidays.

News of the layoffs came first axios, the reported that the team building GameStop’s blockchain wallet was “strongly impacted.” It also referenced LinkedIn posts from numerous employees, including software engineers and employees in the e-commerce department. Furlong didn’t specify the extent of the cuts in his email, instead cryptically referencing a series of “staff cuts” across various teams.

Continue reading: GameStop pushes employees to the limit during the holiday rush

“We recently completed several projects that were part of the early stages of our transformation, enabling the company to operate more efficiently,” he wrote. “In addition, we have gained further clarity on what the right number of employees needs to be in the company to achieve our profitability and growth goals. Those two factors influenced the decision that was made across the company.” Furlong attributed the “proactive” but “difficult” decision to lay off employees in part to high inflation and “weakening consumer confidence” amid record job markets.

this is that third round of layoffs at GameStop’s corporate offices this year, though the stock price remains over 500 percent higher than before the meme stock boom. One thing that certainly didn’t help was Tramp promotion of its crypto marketplace to FTXwhose parent company recently went bankrupt after the founder and CEO was exposed no idea where he had invested billions of dollars.

But it’s also been an incredibly tough time for the frontline workers at GameStop’s stores. A software overhaul earlier this year ruined inventory records and prompted a pre-order clusterfuck that has continued beyond the Black Friday shopping season. Store managers, meanwhile, are being forcibly recruited into a new program in which they will oversee twice as many locations only $1.50 more in hourly wages. Your reward for the effort is the promise Meme stock bonuses.

Unfortunately, none of this will be paid out until next year. Furlong, on the other hand, probably has a nice vacation ahead of him. He made $16.8 million last year. GameStop is getting in the holiday spirit with more layoffs

Curtis Crabtree

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