GameStop releases statement surrounding 120 job cuts

High profile US game retailer GameStop has laid off approximately 120 people this week as part of its company restructuring to combat recent financial troubles which have plagued the firm.

As we reported yesterday, Game Informer staff released news through social media that key personnel had been laid off.

During GameStop’s recent financial disclosure in April, the firm reported a $673 million loss on $8.3 billion in global sales in its fiscal full-year earnings results – marking one of the largest losses in the company’s history.

During the same period the year before, GameStop reported $34.7 million in profit.

In a statement released regarding the staff cuts, GameStop said: “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% of our total associate base at our company headquarters as well as at some other offices.

“While these changes are difficult, they were necessary to reduce costs and better align the organization with our efforts to optimize the business to meet our future objectives and success factors. We recognize 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.”