GameStop has laid off some of its district managers in an attempt to cut middle-management costs, a new report has found. The company has had more than its fair share of trouble lately, with nosediving stocks and increasingly stressed employees calling into question how much longer the retailer has.
The report, published by Polygon, states that as many as 10 of GameStops district managers have been laid off, some of whom have been with the company for over a decade. Now, remaining district managers once in charge of 12 stores may have found themselves in charge of more than 20. Previously, GameStop announced the closure of 200 stores, and it doesn't seem that the company's situation is improving, given the layoffs.
The path forward for the company is muddled. On one hand, GameStop is planning to overhaul its stores, and the release of the PS5 and Xbox Series X should help inject more capital into the company. On the other, GameStop's stocks have nosedived, with the company barely holding on at $3.50 per share, versus $11.70 a year ago. It's an increasingly dire circumstance, and one that seems destined to end in disaster for the company.
GameStop, to its credit, has tried to adapt to the situation, with the company making changes to the PowerUps Rewards program that it hopes will benefit both itself and its customers. The change hasn't seen the most positive reaction online, however, with many criticizing the company. It doesn't help that GameStop has earned a reputation for "low" trade-in values for games.
Any layoffs are unfortunate, though it doesn't seem like the situation will improve for GameStop any time soon. The unfortunate truth is that gamers are witnessing the fall of GameStop, and everything that entails. GameStop's closure would have serious repercussions for the games industry, as many people in rural areas rely on it rather than trying to download games over poor internet speeds.
For now, one can hope that GameStop manages to save itself, though that likely means a very different store than what gamers are accustomed to. However, that may not be such a bad thing - if it's handled correctly.
Source: Polygon