The video game retail chain GameStop has been in financial trouble for quite some time. Recently, this trouble materialized as a 36 percent drop in GameStop stock, which put shares at their lowest value since 2003. Now, it seems that these hardships are leading to layoffs, as reports suggest that more than 50 managers have just been let go from GameStop.
Over on the GameStop subreddit, employees are checking in with one another to see if their District or Regional Leaders have been let go within the last day. District and Regional Leaders are management level positions at GameStop, and many employees are reporting that they have lost both. Furthermore, some employees suggest that their stores have simply been reassigned into different districts, which puts them under the supervision of different Leaders.
Indeed, it appears that there is a restructuring now taking place at GameStop, and an image that elaborates on this restructuring has recently surfaced. Reports suggest that this image is of a message that was circulated to certain GameStop employees, and it focuses specifically on the "GameStop Reboot transformation initiative." Part of this initiative is to "realign field regions and districts in an effort to reduce [its] cost structure and build efficiencies into [its] field leadership organization."
This means that GameStop regions and districts have been expanded, thus "reducing the number of field leaders required to run the organization." The message continues by stating that more than 50 field leaders "have been impacted and will be leaving the GameStop team." Additionally, the message indicates that "these leaders will be missed," but the decision to restructure is "necessary to help reduce costs." A need to reduce costs is certainly understandable, as GameStop reported a $673 million full-year loss earlier this year.
In July, it was revealed that GameStop is partnering with RG/A to develop new concepts for stores, which will look to encourage players to visit physical GameStop locations and bolster the business. However, before these reimagined stores can become a reality, it seems that some amount of fundamental restructuring is required, and part of this restructuring appears to now be taking place through redefined boundaries for GameStop regions and districts.