has terminated its finance chief and is making job cuts because the videogame retailer continues in its effort to show across the enterprise.
The Grapevine, Texas-based firm on Thursday stated that Chief Monetary Officer Mike Recupero is leaving after roughly a 12 months within the position. Diana Saadeh-Jajeh, who has served as chief accounting officer at
will grow to be CFO, efficient Thursday, the corporate stated. Ms. Saadeh-Jajeh served as interim CFO in 2021, after then-finance chief Jim Bell was forced out by activist investor and present board chairman Ryan Cohen.
Together with the change within the CFO seat, GameStop is chopping staffing to assist “hold issues easy and function nimbly,” in accordance with an inner memo obtained by CFO Journal. The reductions come after the corporate employed greater than 600 individuals in 2021 and this 12 months, the memo stated.
GameStop stated it plans to make a “important funding” in retailer leaders and different workers and can present particulars within the coming weeks. The layoffs are restricted to the corporate’s company group and are “not main,” in accordance with an individual conversant in the matter.
The modifications are supposed to assist the corporate grow to be extra worthwhile, GameStop stated in its memo. “This implies eliminating extra prices and working with an intense proprietor’s mentality,” the corporate stated. “Everybody within the group should grow to be much more hands-on and embrace a heightened stage of accountability for outcomes.”
GameStop reported a net loss of $157.9 million for the quarter ended April 30, in contrast with a lack of $66.8 million throughout the prior-year interval. It posted $1.38 billion in web gross sales throughout the first quarter, up from $1.28 billion a 12 months earlier.
GameStop has struggled to publish a revenue lately on account of altering shopper preferences and is revamping its enterprise mannequin to rely much less on bodily shops. He appointed a brand new chief government, Matt Furlong, in June of final 12 months. Mr. Furlong, together with Mr. Recupero, got here from e-commerce big
Mr. Cohen, the co-founder of on-line pet meals and merchandise retailer
was additionally voted in as chairman of the board together with a brand new slate of administrators.
The board earlier this week permitted a four-for-one stock split after floating the concept in March, which shareholders permitted in June.
Ms. Saadeh-Jajeh is ready to obtain an annual base wage of $200,000 in her new position, the corporate stated in a submitting with regulators. She will even proceed to be eligible for a bonus of roughly $1.97 million, to be paid out biweekly over a two-year interval.
GameStop had roughly 12,000 full-time workers and hourly associates throughout the fiscal 12 months ended Jan. 29, and between 14,000 and 28,000 part-time hourly associates, it stated in its annual submitting.
Its shares declined about 6.9% to $128.25 in after-hours buying and selling after closing at $135.12 on Thursday.
—Nina Trentmann and Denny Jacob contributed to this text
Write to Jennifer Williams-Alvarez at [email protected]
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