Whether you’re an avid gamer or you’re just trying to get a game for your child, you’ll be happy to hear that the stock price of game retailer Gamestop wednesday tuesday cfofitzgeraldcnbc was up nearly 104%. However, the company also announced that it has fired its Chief Financial Officer, and plans to lay off several of its corporate employees.
Shares of GameStop closed up nearly 104% on Wednesday
During the last few days, GameStop (GME) shares have surged almost 104%. This has generated huge gains for investors and the company itself. It has also created a big buzz on social media sites such as Reddit. Some analysts are pointing to the popularity of trading options as one of the factors contributing to the spike in GameStop’s stock price.
A quick recap: GameStop announced the resignation of its CFO, Jim Bell, earlier this week. The company stated that Bell’s departure was not due to disagreements with the company’s accounting practices. Rather, GameStop’s board of directors “lost faith” in Bell. Rather than relying on Bell’s expertise, the company has decided to hire a new CFO.
The company also announced that it had received an equity award of $13.8 million from RC Ventures, a venture capital firm. The award is tied to several years’ worth of goals and objectives.
The most recent GameStop rally has drew a lot of attention from Congress and regulators. The company was the subject of a congressional hearing. It was also at the center of a retail trading frenzy. App-based brokerages were also criticized for market manipulation.
While GameStop’s stock has been on a rollercoaster ride, its chief financial officer’s departure is seen as a chance to transform the company into a digitally focused e-commerce enterprise. The company announced that it had $1.4 billion in cash on hand.
In January, the company appointed Ryan Cohen to its board. Cohen is a billionaire co-founder of online pet store Chewy and is a big proponent of GameStop’s e-commerce plans. The company also gained some attention from the Reddit subreddit, WallStreetBets, which has been a big proponent of the GameStop stock’s rise.
The Reddit subreddit isn’t the only place where investors are wowed by the GameStop stock’s recent surge. Other recently shorted stocks include AMC Entertainment (AMC), Express (EXPR) and Koss Corporation (KOSS). Each saw double digit percentage gains today.
The GameStop stock rally has also been aided by individual retail investors. These investors have bought shares to punish hedge funds shorting the stock. However, the biggest winner was the amateur tipsters who pushed the price of the stock up 700% in a week.
The company has fired its Chief Financial Officer
Earlier this week, Gamestop wednesday tuesday cfofitzgeraldcnbc announced that it has fired its Chief Financial Officer, Mike Recupero. Recupero joined the company a little more than a year ago. He had previously been the CFO of Amazon’s North American Consumer business.
Recupero’s departure is part of an aggressive turnaround plan for the video game retailer, which plans to cut staff across the company’s departments. The plan is outlined in an internal memo penned by CEO Matt Furlong. It says that changes are necessary in order to enable the company to operate more nimbly, improve sales growth, and increase profitability.
It is not clear how many employees are being cut. However, GameStop is expected to make a “significant investment” in its store leaders and other employees.
The company also plans to launch a nonfungible token (NFT) marketplace, and has hired people with backgrounds in blockchain gaming. It has also added tech offices and bulked up its supply chain capabilities.
During the course of the past 18 months, GameStop has invested heavily in inventory, technology, and supply chain infrastructure. It has also hired hundreds of executives and employees. However, the company lost $158 million in its most recent quarter, a loss of nearly three-quarters of a billion dollars.
GameStop plans to reduce its expenses by about $215 million. The company has also announced a 4-for-1 stock split that will boost the number of shares held by shareholders. The split does not decrease the total value of the company, however.
GameStop also plans to hire more employees, including executives, in order to launch its digital wallet. It plans to also launch an NFT marketplace by the end of the month. It also announced a new rewards program for its members.
GameStop’s stock has gone through several wild convolutions. It was swept up in the meme stock frenzy, and it is now being targeted by Redditors as a target of anti-Wall Street efforts. The company is also being targeted by anti-hedge fund groups.
The company is also set to lose staff at its Game Informer. Its sales rose in the last year under the control of CEO Craig Cohen, and it has hired people with e-commerce backgrounds to run its tech offices.
Shares of GameStop increased by 4 for 1 stock split
During the first quarter of this year, GameStop (GME) announced plans to split its shares into four shares. This is the second time that GameStop has split its stock, and it’s the first time that a company has split its stock in 15 years.
The company has announced that it will split its stocks in four pieces, and that the total number of shares held by shareholders will be four times the current number of shares. This will enable a larger number of shares to be held by individual investors, and put the company’s stock in a more accessible position to the average investor.
The company has also announced plans to open a non-fungible token (NFT) marketplace. This will allow investors to trade in the company’s shares for a token that can be traded in the stock market.
While a stock split can have a positive impact on the company’s short term value, it won’t necessarily do much to improve the long-term value of the company. This is because the company is obligated by its charter to adhere to specific parameters. This means that the company may have to get shareholder approval to increase the number of shares held by investors.
- The company also announced plans to launch a digital wallet that allows users to store non-fungible tokens. This is a good example of the company’s focus on the digital future.
- The company also announced plans to increase the number of outstanding Class A common shares. This will allow the company to provide more shares for shareholders, and provide more flexibility for the company’s future needs.
- The company has also been on the cutting edge of the game industry, as it has introduced non-fungible tokens, or NFTs, and has plans to launch a digital wallet for these tokens. The NFT will allow for investors to trade in their shares for tokens, and will also allow the company to better track its share price, which will help with its bottom line.
- The company also announced that it has a new chief accounting officer. This person will be tasked with leading the company’s efforts to develop new business models.
The company plans to lay off some corporate employees
Despite its recent success in the ecommerce market, GameStop is laying off a significant amount of its corporate employees. In a press release, the company announced it was firing Chief Financial Officer Mike Recupero and replacing him with Chief Accounting Officer Diana Jajeh. The move is part of an aggressive turnaround plan for the retailer. This comes on the heels of GameStop’s first-quarter results, which show net losses more than doubling to $158 million.
A year ago, Recupero was hired as the CFO of GameStop. He came on board at the company after spending a year at Chewy, another e-commerce company. The move is part of a strategy to catch up with the videogame business that has moved online. It also comes after a tumultuous year for the retailer, which lost more than $215 million in its most recent fiscal year.
Since then, GameStop has made significant changes to its staff. The company has hired over 600 corporate leaders, including former Amazon executives. It has also begun to invest in field employees. This includes a new rewards program, and plans to launch a marketplace for nonfungible tokens. It has also boosted hiring for technology and ecommerce, among other areas. The company has also increased its hiring for people with backgrounds in blockchain gaming.
The layoffs are part of a growing trend of staff cuts at companies. In June, 32,500 US-based employers announced plans to cut jobs. This is a 57% increase over the number of job cuts in May. In addition, the number of overall firings has dropped to a record low.
Gamestop has not responded to CNBC’s request for comment on the layoffs. While it is not clear how many employees will be laid off, a source said the company plans to lay off as many as 25 percent of its corporate workforce. This is the first time the company has formally announced layoffs, but a company memo has been leaked to media outlets. It is unclear whether the company will provide a formal explanation for the layoffs.
In addition to the layoffs, GameStop has also announced a four-for-one stock split, which increases the number of shares available for purchase. Shares of the retailer closed up 15% in extended trading after the board approved the split.