GameStop fires its CFO and announces layoffs as part of aggressive turnaround plan

A screen displays the logo and trading information for GameStop on the floor of the New York Stock Exchange (NYSE) March 29, 2022.

The CFO was fired and the company is cutting staff as part of a plan to turn around the business.

A person familiar with the matter told CNBC that Recupero was fired because he was too hands off. The person said that he was pushed out.

The CFO will be Diana Jajeh.

The layoffs, which were announced in a memo to employees that was obtained by CNBC, are on the corporate side of the company rather than at its stores, the person said.

The changes in the memo were explained to employees by the CEO.

He said to eliminate excess costs and operate with an intense owner's mentality. Everyone in the organization needs to be more hands-on and more accountable for results.

The company's shares fell after gaining more than 15% in the regular session.

The full memo can be found here.

It was all.

We will change as we evolve our business and introduce new products. Over the past 18 months, we have invested heavily in personnel, technology, inventory and supply chain infrastructure. Eliminating excess costs is one way to operate with an intense owner's mentality. Everyone in the organization needs to become more hands-on in order to get better results.

I will be sharing three organizational updates today.

We have a better understanding of our needs after making more than 600 corporate hires. This has made it possible for us to right-size our staff. We are making a number of reductions in order to keep things simple and operatenimbly with the right talent.

In order to fulfill the needs of our customers, we will be making a significant investment in our store leaders and field employees. They are the heart of the company. This investment will be shared in the coming weeks.

The Chief Financial Officer is leaving. Diana Jajeh, who has been our Chief Accounting Officer, has been promoted to Chief Financial Officer.

We will be able to operate in a profitable manner as we execute against our strategy of pursuing sales growth in our commerce business and launching new products that empower customers in the digital asset and web3 gaming industries. I am confident in the team we have in place and thank you for your dedication.

Matt.

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