GameStop Layoffs: What Does It Mean For The Video Game Retailer?

As part of its realignment strategy, video game retailer GameStop (GME) has reportedly laid off dozens of regional leaders. The news was leaked via Twitter from a company email.

GameStop, which unsuccessfully has tried to sell its assets, said in the alleged email that over 50 regional district field leaders, human resources, and loss prevention leaders would be laid off. The company has been struggling with sales as consumers move toward digital services for gaming, according to IGN.

The company explained the layoffs by saying it was part of its new “realignment” strategy, that would expand the retailer’s regions and districts, requiring fewer field leaders to manage territories, according to the email.

The email read in part, “Unfortunately, with these changes, there are more than 50 field leaders who have been impacted and will be leaving the GameStop team. This includes regional, district, HR, and LP leaders. These leaders will be missed and we wish them success in their future endeavors.”

GameStop has been struggling to find a buyer for its video game chains, posting nearly a half-a-billion-dollar loss in 2018, IGN reported. The move to consolidate its regions to reduce the number of regional leaders could be a cost-cutting measure for the company, the news outlet said.

The company has said it is redesigning stores for “unique” customer experiences that will showcase live events and retro games.

Shares of GameStop stock were down 1.69 percent as of 2:26 p.m. ET on Friday.