Mass looting as stock price tanks

An internal memo has revealed major changes at a US video game giant, causing stocks to plummet.

Video game giant GameStop has fired its chief financial officer and laid off staff, according to an internal memo obtained by the media.

The memo to employees of CEO Matt Furlong said “a number” of staff members would be fired and that chief accounting officer Diana Jajeh would replace current CFO Mike Recupero, the spokesman said. CNBCwho published the memo in its entirety.

A person familiar with the matter told CNBC that the job losses would be on the business side of the company rather than in stores.

In the memo, Mr Furlong said the company would make “significant investments” in its store managers and field salespeople. He said they were the “heart of GameStop” and further details would be shared in the coming weeks.

While the exact number of job losses is not clear, Yahoo has reported that in verbal communications delivered during several live meetings, employees were told there would be a 25 percent reduction in staffing levels. However, that number should only include company personnel.

In the memo, Mr Furlong said more than 600 “corporate hires” were made last year and earlier this year.

“These changes will enable us to operate profitably as we execute on our strategy to pursue revenue growth in our commerce business and launch new products that empower customers within the digital asset and web3 gaming vertical market” , he reportedly wrote in the memo.

He also said, “Everyone in the organization needs to get even more hands-on and embrace an increased level of accountability for results.”

GameStop confirmed that Ms. Saadeh-Jajeh would immediately assume the position of CFO and that it has terminated Mr. Recupero’s employment in a statement posted on its website.

Mr. Furlong’s memo sent the video game retailer’s shares down 8 percent in expanded trading, according to Reuters

Shares closed about 15 percent higher in regular trading.

Earlier this week, shares were up more than 8 percent in extended trading after the company said its board had approved a 4-for-1 stock split, which will take effect later this month.

A stock split increases the number of shares in a company and makes them more affordable for investors.

GameStop has not returned any media requests for comment.

Last month. a GameStop store in a shopping mall in Nebraska unexpectedly shut down after four employees stopped abruptly

When they left, customers found a cheeky note on the front door.

“We are sorry to inform you that we have all retired,” the note read.

“Our district manager has no respect for us as employees or as people.

“Our district manager told us that this store should have met sales quota months ago and should have been running perfectly. That was months before many of us were even hired. Unfortunately, despite the best efforts of the staff, we are not a god.”

The incident was part of the ongoing turmoil between GameStop and employees, which comes at a time when digital game sales are making it difficult for traditional brick-and-mortar stores to compete.

GameStop became the world’s biggest meme stock last yearwith an increase of about 1000 percent in two weeks.

The price of the GME stock rose thanks to a group of amateur investors on the r/wallstreetbets subreddit who banded together to fight short sellers.

Hedge fund Melvin Capital was all but ruined after it made huge bets that GameStop stock would crash.

The share price of a little-known Australian mining company – GME Resources Limited – followed the rally.

Investors apparently mistook the Australian company for the American cult stock of the same name.

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