Video game retailer GameStop has been struggling financially for some time. Most recently, GameStop's stock dropped 36%, bringing the value of the retail chain’s shares to the lowest they've been since 2003. These financial hardships have also lead to some cutbacks, as reports suggest that more than 50 managers have just been laid off from GameStop stores.
Employees have taken to GameStop's subreddit to talk about the retailer's recent issues. Many employees have reported layoffs at management-level positions, including among district and regional leaders. Some employees have reported that their stores have been reassigned to different districts. Overall, this suggests that GameStop has been restructuring in order to cut down on GameStop’s managerial payroll.
An image that was circulating among GameStop employees sheds more light on the subject. The regions and districts have been restructured in order to reduce costs. The new structure, which is intended to be a “GameStop Reboot transformation initiative,” will make the GameStop leadership more efficient, presumably by hiring fewer of them.
This follows GameStop’s reported $673 million loss for the last fiscal year, so it makes sense that GameStop is taking action. GameStop’s financial troubles are partly related to the fact that customers don’t go to brick and mortar stores to buy games as much anymore since most games are available online. GameStop is planning to fix this by creating an experience at each store using them as a place where gamers can meet and engage with the community. It also plans to host competitive esports tournaments and open special locations that only sell retro games. Though GameStop hasn’t announced any specifics, it can be assumed that the Reboot transformation initiative is part of this new transition.
Whether or not GameStop’s rebranding will work, there may be more restructuring and layoffs coming in the future. GameStop employees might end up without jobs as the company desperately tries to stay relevant in a changing economy. In the wake of Walmart employees organizing on their subreddit following the firing of an employee, it would not be surprising if GameStop employees did the same.