GameStop Lays Off Over 100 People, Including Nearly Half Of Game Informer's Staff

Photo: Ethan Miller, Getty Images

The struggling retail chain GameStop laid off over a hundred employees today, both at its corporate headquarters in Grapevine, Texas and at other offices including its subsidiary Game Informer magazine in Minnesota, where nearly half of the editorial staff lost their jobs in a surprise cut.

“As part of the previously announced GameStop Reboot initiative to transform our business for the future and improve our financial performance, we can confirm a workforce reduction was implemented impacting more than 120 corporate staff positions, representing approximately 14 per cent of our total associate base at our company headquarters as well as at some other offices,” a GameStop spokesperson told Kotaku in a statement.

“While these changes are difficult, they were necessary to reduce costs and better align the organisation with our efforts to optimise the business to meet our future objectives and success factors. We recognise that this is a difficult day for our company and particularly for those associates impacted. We appreciate their dedication and service to GameStop and are committed to supporting them during this time of transition.”

This news comes just a few weeks after GameStop laid off dozens of regional managers, following a brutal year that saw the company try (and then stop trying) to sell itself. GameStop’s stock has plummeted over the past few years as the retailer continues to struggle to stay afloat in a world where digital distribution has grown to dominate gaming.

The layoffs blindsided staff at Game Informer today. Seven of the popular magazine’s editors announced on Twitter this afternoon that they had been laid off, including one who said he was on vacation. (Per Game Informer’s masthead, the magazine has 19 full-time editorial staff.) 

“I am trying to get things right with my people,” editor-in-chief Andy McNamara wrote on Twitter. “I love Game Informer, its people and its readers more than any corporation could, and I will address all the issues when I can, but for now I need to focus on my GI family.”


Comments

    Wowsers. I guess the Australian Game Informer was just the canary in the mine.

    Every few years we see another video game store chain close, yet somehow we still seem to have video game stores.

    Sometimes a retail chain closes. Usually it's because the company hasn't kept pace with changing consumer tastes, or it's just been out-competed by cheaper and smarter alternatives, rather than something fundamental about the market itself.

    We see this all the time with fashion which, despite having far and away the best margins in the business, is always spun as some kind of retail/consumer downturn rather than just crap or unlucky management.

    Either way, I'm the problem in this case since I've not seen any need to pay game shop premium prices for over a decade.

    So... does this mean EB here in trouble?
    'Cause I'm okay with that.

      As much as you might dislike EB games. Them shutting down would be bad.

      If they shut down it removes any and all competition for JB HIFI and they would not have to try anymore.

      Love how JB HIFI usually has lower prices? Say goodbye to that if EB goes under. They won't have any reason to price lower than EB.

      EB is a necessary evil.

    See, I think that EB would leave a vacuum that would get absorbed by somebody else.
    Either the Australian end of the biz get bought up and refranchised, or retail outlets like K-MArt go back to gaming and step it up.
    Either way, I'm way happy to wait out the period where JB has the monopoly until something BETTER comes along. You know, places that don't send you the wrong game when you buy an online order from their store, or don't sell your special edition pre-orders to staff who "Wanted it more" than me.
    I have no love or trust for EB. They're dody. They're like the Catholic church of gaming.

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