Aug 26, 2019  Game Informer Editorial Affected During Huge GameStop Lay Offs If your outlet has open headcount, give these seven people a shot.

It’s no secret that GameStop has been struggling of late, but those struggles are finally starting to catch up with the people who work for GameStop. Over 120 employees were recently laid off from GameStop as well as seven members of Game Informer’s editorial team, affecting approximately 14% of the company’s total staff at its corporate headquarters. A GameStop official was in contact with IGN, telling them:

As part of the previously announced GameStop Reboot initiative to transform our business for the future and improve our financial performance, we can confirm a workforce reduction was implemented impacting more than 120 corporate staff positions, representing approximately 14% of our total associate base at our company headquarters as well as at some other offices.

While these changes are difficult, they were necessary to reduce costs and better align the organization with our efforts to optimize the business to meet our future objectives and success factors. We recognize that this is a difficult day for our company and particularly for those associates impacted. We appreciate their dedication and service to GameStop and are committed to supporting them during this time of transition.

Earlier this month, GameStop was hit with massive layoffs following the company’s restructuring, impacting district managers and store leaders. The restructure is a response to the company’s decline in profits in recent years. As digital games are on the rise, and Amazon makes ordering physical copies quick and easy, specialty retailers have seen a major decrease in physical media sales. Although, GameStop was pleased to learn that the next generation PlayStation will still support physical media, and is likely hoping to use the launch of the new systems as a springboard to become more profitable.

It’s unclear if the company’s restructuring is working out, but if the recent layoffs are any indication, GameStop is still in bad shape. It will be interesting to see what strategy console manufacturers employ for next-gen consoles if GameStop does entirely go out of business.

We’ll continue to keep you updated with all things GameStop as more information becomes available. We wish all those affected by the layoffs the very best and hope they land on their feet.

[Source: IGN]

Game Informer Layoffs

Major video game retailer GameStop has announced layoffs for 120 corporate staffers, representing a 14% reduction of the company's 'total associate base at our company headquarters as well as at some other offices.'

“While these changes are difficult, they were necessary to reduce costs and better align the organization with our efforts to optimize the business to meet our future objectives and success factors,' GameStop said in a statement. 'We recognize that this is a difficult day for our company and particularly for those associates impacted. We appreciate their dedication and service to GameStop and are committed to supporting them during this time of transition.”

It's unclear if that number includes staffers at GameStop-owned Game Informer magazine, many of whom took to Twittertoday to share news of their unexpected layoffs. Of the 19 staffers listed on the magazine's masthead at least six were let go today, including Managing Editor Matt Bertz.

'I appreciate all the love,' Game Informer Editor-in-Chief Andy McNamara tweeted today. 'I see it. I feel it. I am trying to get things right with my people. I love Game Informer, its people, and its readers more than any corporation could, and I will address all the issues when I can, but for now I need to focus on my GI family.'

Can the sinking ship be raised?

The layoffs continue a string of bleak news for GameStop, which still maintains well over 5,000 storefronts across 14 countries. After the company announced it had failed to find a buyer in January, it posted a massive quarterly loss in April, causing its stock to plummet to its lowest point since 2005. Since then, GameStop saw its CFO and COO depart, instituted layoffs of 50 'field leaders,' and shuttered its ThinkGeek collectibles subsidiary.

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As of this writing, GameStop stock is trading at $3.42. That's down 17% from a month ago, nearly 80% from a year ago, and almost 94% from its peak in late 2013.

Andy Mac Announces Game Informer Layoffs Today

In June, new GameStop CEO George Sherman outlined a three-point 'Reboot' plan to turn things around at the struggling retailer. Point one in that plan was addressing 'selling, general, and administrative expenses,' which seems to be the target of these recent layoffs. The other two points involved 'optimiz[ing] the current business,' in part through better prices on used games; and 'develop[ing] new revenue streams for the future,' including more involvement in digital sales and 'immersive interactive experiences,' whatever that means.

Those kinds of changes might not be enough to save GameStop from the seemingly inexorable move toward downloads and Internet streams that claimed other physical media retailers like Suncoast and Tower Records. In any case, we'd imagine the GameStop belt-tightening is going to get even more drastic before any potential turnaround starts to appear.