has terminated its finance chief and is making job cuts as the videogame retailer continues in its effort to turn around the business.
The Grapevine, Texas-based company on Thursday said that Chief Financial Officer
is leaving after roughly a year in the role.
who has served as chief accounting officer at
will become CFO, effective Thursday, the company said. Ms. Saadeh-Jajeh served as interim CFO in 2021, after then-finance chief
was forced out by activist investor and current board chairman
Along with the change in the CFO seat, GameStop is cutting staffing to help “keep things simple and operate nimbly,” according to an internal memo obtained by CFO Journal. The reductions come after the company hired more than 600 people in 2021 and this year, the memo said.
GameStop said it plans to make a “significant investment” in store leaders and other employees and will provide details in the coming weeks. The layoffs are limited to the company’s corporate organization and are “not major,” according to a person familiar with the matter.
The changes are meant to help the company become more profitable, GameStop said in its memo. “This means eliminating excess costs and operating with an intense owner’s mentality,” the company said. “Everyone in the organization must become even more hands-on and embrace a heightened level of accountability for results.”
GameStop reported a net loss of $157.9 million for the quarter ended April 30, compared with a loss of $66.8 million during the prior-year period. It posted $1.38 billion in net sales during the first quarter, up from $1.28 billion a year earlier.
GameStop has struggled to post a profit in recent years due to changing consumer preferences and is revamping its business model to depend less on physical stores. It appointed a new chief executive,
in June of last year. Mr. Furlong, along with Mr. Recupero, came from e-commerce giant
Mr. Cohen, the co-founder of online pet food and products retailer
, was also voted in as chairman of the board along with a new slate of directors.
The board earlier this week approved a four-for-one stock split after floating the idea in March, which shareholders approved in June.
Ms. Saadeh-Jajeh is set to receive an annual base salary of $200,000 in her new role, the company said in a filing with regulators. She will also continue to be eligible for a bonus of roughly $1.97 million, to be paid out biweekly over a two-year period.
GameStop had roughly 12,000 full-time salaried and hourly associates during the fiscal year ended Jan. 29, and between 14,000 and 28,000 part-time hourly associates, it said in its annual filing.
Its shares declined about 6.9% to $128.25 in after-hours trading after closing at $135.12 on Thursday.
—Nina Trentmann and Denny Jacob contributed to this article
Write to Jennifer Williams-Alvarez at [email protected]
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Appeared in the July 8, 2022, print edition as ‘GameStop Fires Finance Chief, Trims Staffing.’