GameStop has terminated the employment of its Chief Financial Officer and is cutting staff in moves to increase profitability after a big increase in expenses, reduction in gross margin, and a much bigger loss in its fiscal Q1 ended June 30 (see "GameStop Money-Losing Quarter").
CFO Michael Mecupero was terminated on Thursday, July 7, roughly a year after he took the role fresh off a 17-year stint at Amazon. He was immediately replaced with Diana Saadeh-Jajeh, who had been the company’s Chief Accounting officer, the company announced.
Layoffs are also underway at the company, according to Kotaku, which cited a Thursday email to employees announcing the reductions. The company’s "focus is on achieving sustained profitability," CEO Matt Furlong told employees.
GameStop lost $381.3 million in its last fiscal year ended January 29, 2022, up from a $237.8 million loss in the previous year (see "Losing Quarter, Year"). One bright spot has been sales in the company’s Collectibles category, which includes TCGs and other tabletop games, where sales were up 42% last year.
After Increased Expenses, Losses in Q1
Posted by Milton Griepp on July 8, 2022 @ 2:34 am CT