GameStop has fired its CFO and announces layoffs as part of a tough turnaround plan

A GameStop logo and trading information screen displays on the floor of the New York Stock Exchange (NYSE) on March 29, 2022.

Brendan McDermid | Reuters

Jim Stop The company announced Thursday that it is firing its chief financial officer, Mike Ricupero, and is making employees cut across divisions as part of an effort to transform the video game retailer’s role.

Recupero, who joined the company about a year ago, was “fired because he didn’t fit in the right culture” and was “too out of hand,” a person familiar with the matter told CNBC. The person said GameStop president Ryan Cohen fired him.

Diana Gage, the company’s chief account officer, will become the chief financial officer.

The layoffs, announced in an employee memo obtained by CNBC, are on the company’s side rather than in its stores, the person said, and are intended to “reduce bloating” as GameStop invests in other areas.

CEO Matt Furlong explained the changes in the memo to employees and said the company must take bold steps as it invests in its digital future.

“This means eliminating excess costs and working with the sharp owner mindset,” he said. “Everyone in the organization must become more trained and accept a higher level of accountability for results.”

The company’s shares are down more than 6% in extended trading after rising more than 15% during the regular session.

Here is the full note:

everybody,

Change will be constant as we develop our businesses and launch new products through our blockchain. Having invested heavily in people, technology, inventory and supply chain infrastructure over the past 18 months, our focus is on achieving sustainable profitability. This means eliminating excess costs and dealing with the owner’s sharp mindset. Everyone in the organization must become more trained and accept a higher level of accountability for results.

Having said that, I’m in touch today to share three regulatory updates:

1. After hiring more than 600 companies in 2021 and the first half of 2022, we have a stronger understanding of our transformation needs. We have put this in our position to calculate the correct size of the headcount across many divisions of the company. Today, we’re making a number of cuts to help us keep things simple and work nimbly with the right talent in place.

2. We will make a significant investment in Shop Leaders and field staff, who play an important role in meeting our customers’ needs. These individuals are, in many respects, the heart of GameStop. We will be sharing details regarding this investment in the coming weeks.

3. Mike Ricupero, who has served as the company’s chief financial officer since last June, will be leaving. Diana Gage, who was our Head of Accounting and possesses strong corporate knowledge of the business, has been appointed to the position of Chief Financial Officer.

These changes will enable us to operate profitably as we execute on our strategy of pursuing sales growth in our business and launching new customer-enabled products in the digital assets and web gaming 3 segments. I am confident in the team we have in the future, and thank you once again for your dedication and continued focus.

It is considered,
not shiny

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