GameStop fires CFO, announces layoffs

Video game retailer GameStop has fired its Chief Financial Officer Mike Recupero and announced job cuts as the company struggles. 

In an internal memo obtained by CNBC, GameStop’s CEO Matt Furlong announced a round of layoffs in the company. The company has not given a proper explanation for the layoffs and has not yet specified the number of the job cuts.

As per the memo, Furlong writes, “After investing heavily in personnel, technology, inventory and supply chain infrastructure over the past 18 months, our focus is on achieving sustained profitability.”

While announcing the changes, the CEO added, “After making more than 600 corporate hires in 2021 and the first half of 2022, we have a stronger understanding of our transformation needs. Today, we’re making a number of reductions to help us keep things simple and operate nimbly with the right talent in place.”

The CEO mentioned that change will be a constant for the company as they manoeuvre their way through the evolution of the business and launch new products through blockchain groups.

On the other hand, as per CNBC’s sources, CFO Mike Recupero was “fired because he was not the right culture fit” and was “too hands off.” The CFO will be replaced by Diana Jajeh, who was previously working as the Chief Accounting Officer.

Earlier this year, the company launched its NFT marketplace and crypto wallet.