In a world where nothing is permanent except change, GameStop has plans to adapt to the changing game industry through a surprising number of layoffs. In previous years, more and more services and products have been handled virtually as traditional brick-and-mortar strategies have suffered from competitors within e-commerce. Similarly, the gaming industry has been taking more of an electronic approach in order to appeal to the public. The challenges proposed to GameStop are not unfamiliar, but brick-and-mortar’s losing battle with e-commerce has only proved that online shopping is simply more efficient.
Nevertheless, the 10 billion dollar company is far from bankruptcy; leaders of the company have decided to lay off many of their employees including higher-ups like Mike Recupero, their chief financial advisor. The company has intentions to become more invested in its digital future, thus requiring employees that are more hands-on. People like Recupero simply would not make the cut, while people like Diana Jajeh have been inducted for their promising engagements in technology. Many of the firings at the corporate level have not affected job holders at stores, and have also been compensated with 600 hirings since 2021. Experienced leaders like Cohen of Chewy and Matt Furlong of Amazon have added to the potential that GameStop holds.
GameStop’s revival plan continues to shift to a virtual holding point by increasing their online presence. The business has plans for launching a redesigned app to draw in new customers with a new rewards program. Meanwhile, the hiring of talented individuals, with experience in e-commerce and block chain gaming, continues. Some members of the company are also trying to help kickoff a new direction of market in the non-fungible token (NFT) field. All the while this is happening, the stock price of GameStop have been fluctuating crazily as a periodic meme frenzy sweeps control every once in a while. Nonetheless, the retailer has still managed to stabilize the company’s most important shares, its strategies were not discussed further at press conferences.
The future of GameStop is indeed a murky one but there is no doubt that the company’s management is fighting to get it right. The path was never easy but the company still has a chance to fit in with the ever changing desires and demands of the gaming public. Such a sliver of a chance can only be taken advantage of if corporate management can get more hands-on with their tasks and execute dramatically on their visions and goals. Excess costs must be eliminated as well in order for the company to perform well in the long run.
In the regular season, the company has gained more than 15% growth in their shares, but more recently, their shares have decreased 6%. As of today, the company is valued at $10.29 billion, but the future has yet to tell another story for GameStop’s legacy. The board has also approved a 4-for-1 stock split. Decisions like these are usually made in order to increase the number of shares of the company while also making the price of each stock more affordable for newer investors. As a result, the stock price has jumped up 8%. GameStop’s run is not over yet, and only their future decisions will decide the company’s fate as the past month marks yet another important time in the timeline of online marketing.
