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GameStop Dismisses CFO and Announces Layoffs, Shares Plunge

Published 2022-07-08, 08:16 a/m
© Reuters
GME
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By Senad Karaahmetovic

GameStop (NYSE:GME) fired its CFO Mike Recupero and announced additional layoffs across multiple departments as the gaming retailer undertakes an aggressive business revamp.

Recupero will leave GameStop just a year after joining it “because he was not the right fit”. The CFO was pushed out by the retailer’s chairman Ryan Cohen, the CNBC report says.

Recupero will be replaced by the company’s current chief accounting officer Diana Jayeh, who will have an annual salary of $200,000 as GameStop’s new CFO, according to a filing with the U.S. Securities and Exchange Commission (SEC).

Jayeh will also be qualified for a “transformation bonus” totaling $1,965,000.

The planned layoffs are set to affect the corporate part of GameStop rather than its store staff, aiming to “reduce bloat” as the retailer prepares to invest in other areas.

The moves come as GameStop embarks on a determined business restructuring and increases its share in the videogame industry which continues to move online. Activist investor Ryan Cohen was chosen to lead the company’s turnaround last year.

Since then, Cohen has introduced a number of new corporate leaders in the company, including CEO and CFO Matt Furlong and Recupero, respectively.

GameStop shares are down over 5% in pre-open Friday.

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