GameStop has fired its Chief Financial Officer, Mike Recupero, and is planning on laying off staff across different apartments. The layoffs come amid an aggressive turnaround plan.
CNBC reported on the story, with someone familiar with the matter saying that Recupero was “fired because he was not the right culture fit.” Recupero had been with the video games retailer for about a year, but was pushed out by GameStop chairman Ryan Cohen.
Recupero’s replacement will be Diana Jajeh, GameStop’s chief accounting officer. According to a filing with the U.S. Securities and Exchange Commission, she will have a starting annual salary of $200,000, with a “transformation bonus” eligibility in an aggregate amount of $1,965,000.
The announced layoffs will be within its corporate sphere more than its stores, and is intended to “reduce bloat.”
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GameStop has been attempting to catch up to the modern video game world as things shift from brick-and-mortar to online platforms. Cohn, founder of Chewy, was brought on last year to lead the turnaround for the company. The company made over 600 corporate hires since 2021.
GameStop soared to popularity back in a frenzy of meme stocks after Reddit users on r/WallStreetBets began mass-investing in the company’s shares. Since then, GameStop has attempted to update its style and reinvent its brand in today’s age.
The company has made some changes in recent times, including a redesigned app, new rewards program members, and is planning on entering the blockchain universe with NFTs by the end of the second quarter.
CEO Matt Furlong wrote in a memo to employees that the company would have to eliminate “excess costs and [operate] with an intense owner’s mentality. Everyone in the organization must become even more hands-on and embrace a heightened level of accountability for results.”
This is a copy of the memo obtained by CNBC:
All,
Change will be a constant as we evolve our commerce business and launch new products through our blockchain group. After investing heavily in personnel, technology, inventory and supply chain infrastructure over the past 18 months, our focus is on achieving sustained profitability. This means eliminating excess costs and operating with an intense owner’s mentality. Everyone in the organization must become even more hands-on and embrace a heightened level of accountability for results.
With that said, I’m getting in touch today to share three organizational updates:
1. After making more than 600 corporate hires in 2021 and the first half of 2022, we have a stronger understanding of our transformation needs. This has positioned us to right-size headcount across several corporate departments. Today, we’re making a number of reductions to help us keep things simple and operate nimbly with the right talent in place.
2. We’re going to be making a significant investment in our Store Leaders and field employees, who play a critical role fulfilling the needs of our customers. These individuals are, in many respects, the heart of GameStop. We’ll be sharing details regarding this investment in the coming weeks.
3. Mike Recupero, who has served as our Chief Financial Officer since last June, is departing. Diana Jajeh, who has been our Chief Accounting Officer and possesses strong institutional knowledge of the business, has been appointed Chief Financial Officer.
These changes will enable us to operate in a profitable manner as we execute against our strategy of pursuing sales growth in our commerce business and launching new products that empower customers within the digital asset and web3 gaming verticals. I’m confident in the team we have in place going forward, and thank you again for your continued dedication and focus.
Regards,
Matt
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Zainah Yousef
Zainah Yousef is the author of The Fallen Age Saga and specializes in gaming, social media advice, and reviews. She's been writing all her life and she probably won't stop anytime soon.
