GameStop Fires CFO and Performs Mass Layoffs - Navigasi Berita a -->
Skip to content Skip to sidebar Skip to footer

GameStop Fires CFO and Performs Mass Layoffs

Navigasi - In the midst of solving problems that Gamestop will do before. GameStop fired its Chief Financial Officer, Mike Recupero, and staff across departments as part of an aggressive change Thursday (7/7).

GameStop Fires CFO and Performs Mass Layoffs
GameStop Fires CFO and Performs Mass Layoffs

According to CNBC, Recupero, who joined the company a year ago, was "fired because he didn't fit into the right culture" and was "too hands off". in addition, the company has provided memos to employees about the news of the layoffs.

The company's shares fell more than 6% in extended trading after rising more than 15% during the regular session triggered by this news.

After making a scene because its stock soared in early 2021, GameStop is now in the spotlight again, Be-emers. The Chief Financial Officer (CFO) of the game retail company has officially resigned from GameStop, you know! Wow, why?

Reporting from Forbes, the news about the release of GameStop's CFO Jim Bell comes after the "rollercoaster" period experienced by GameStop. At that time, GameStop shares became the focal point of many parties, including retail investors who were members of the WallStreetBets Reddit community.

Bell is reported by The Wall Street Journal, will resign on March 26, 2021. GameStop has not provided information about the reason for Bell's departure.

However, it said that Bell's departure from GameStop was not related to a dispute with the company or its operations, policies or practices. GameStop actually praised the contribution of Bell who has also been trying to fight for the past year in the Covid-19 pandemic. business

GameStop and Bell under Pressure

On the other hand, according to a source who told Forbes, Bell was kicked out because the board lost faith in his ability to help shift the company to an e-commerce focus.

Bell, who joined GameStop in 2019, has struggled to increase online shopping and sales of digital video games. Unfortunately, GameStop's biggest shareholder, Ryan Cohen, has criticized the company's leadership for failing to embrace the digital economy.

If you look at 2020, GameStop is actually under pressure from Ryan Cohen, who incidentally is the founder of Chewy Inc. and holds a 13 percent stake in GameStop through RC Ventures LLC.

Well, according to The Wall Street Journal, RC Ventures in November 2020 sent a letter to the GameStop board urging it to conduct a strategic review of the business and reduce its dependence on physical retail with a focus on e-commerce.

Finally, in January 2021, GameStop and RC Ventures agreed that Cohen, former Chewy Chief Operating Officer Alan Attal and former Chewy CFO Jim Grube, would serve on the board. GameStop also agreed to suspend provisions until the annual general meeting in 2022.

Looking for a New GameStop CFO

Actually, Bell's departure happened not long after GameStop earlier this month announced several new employees for its leadership team, you know! In fact, among them there is one former Amazon executive, Matt Francis.

Reportedly, Matt will take on a new role as Chief Technology Officer (CTO) at GameStop. So, who will replace Bell to become GameStop's CFO?

According to Wedbush Securities Inc. analysts. Michael Patcher, GameStop should consider a CFO experienced in the brick-and-mortar retailer sector with strong e-commerce operations, to help develop greater digitization.

Telsey Advisory Group managing director Joseph Feldman said it was likely that GameStop would look for a chief financial officer with more operational expertise than financial skills. You see, RC Ventures is pushing for a major shift to a more digital operation.

Meanwhile, GameStop is still looking for a replacement for Bell. Reportedly, GameStop has plans to appoint their Chief Accounting Officer (CAO), Diana Jajeh, to act as temporary CFO if they don't find a permanent replacement for Bell.