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GameStop chief financial officer Mike Recupero is headed for the exit, and the gaming giant will lay off "a number of" employees as it strives for "sustained profitability," CEO Matt Furlong wrote in a memo to employees obtained by Axios.
Why it matters: Furlong said the move is aimed at reducing costs and shifting toward an "intense owner's mentality" for the failing-business-turned-meme-stock. GameStop has been hemorrhaging cash while promising better days ahead.
Details: Recupero will be replaced as CFO by chief accounting officer Diana Jajeh as the company pursues growth in sales and launching new products, Furlong wrote.
- Furlong said the cuts come after the company hired more than 600 workers in 2021 and the first half of 2022. Leaders are now in a better position to understand its "transformation needs," he said.
- GamesStop will lay off employees at its publication Game Informer as well.
- The company will also make "significant investment" in store leaders and employees, which Furlong called "the heart of GameStop."
What he's saying: "Everyone in the organization must become even more hands-on and embrace a heightened level of accountability for results," Furlong wrote in the memo.
- The CEO said he's confident with the team the company has going forward.