A GameStop manager is claiming the popular retail company has started corporate layoffs. The company has been undergoing massive amounts of fluctuation since its stock price soared to all-time highs with the help of Reddit users in 2021, and the changes seem to be continuing into 2023.
When GameStop released its 2021 annual report, it revealed that "this past year marked the beginning of a systemic transformation at GameStop" and that it is "focused on transforming into a customer-obsessed technology company." The only problem seems to be that while GameStop is shifting its focus to be customer-obsessed, customers have apparently not been as obsessed with GameStop as of late, ultimately leading to negative conditions for workers.
In a viral TikTok video, a GameStop manager known by the username redsonjattv shared the grind of working at a brick-and-mortar location. In the video, the manager expresses that "everything's on clearance" and that "no one comes in anymore." She also mentions in the video that GameStop has started laying off employees. The TikTok video currently has over 6.4 million views and has inspired dialogue about the future of GameStop and its workers.
In the comments section of redsonjattv's video, former GameStop employees and managers shared their own stories from their experiences working at GameStop over the years. Some users cited the high prices for used games as a reason for the company's decline, while others were simply surprised that GameStop had survived this long at all. Some of the most-liked comments on the video compare GameStop to RadioShack and Blockbuster.
According to RetailDive, GameStop's shift to focus on profitability led to some major changes at the company, which include corporate layoffs across GameStop and the company shutting down its Kentucky-based distribution center. GameStop has also laid off over 50 district managers entirely with no prior notice. CEO Matt Furlong has stated that the two main focuses of the company are short-term earnings and long-term growth. The company is being very prudent when it comes to decision-making, with every thought pointing towards achieving longevity.
The TikToker later detailed the current condition of her physical retail location in an email to the Daily Dot after posting her video. She added that the store had been empty before Christmas and even Black Friday barely saw any customers. She points to corporate decisions made throughout the years as the reason for GameStop's downfall. Despite all of these concerns, there has been no talk of her store closing. As GameStop continues to transform itself, it remains to be seen what the future holds for the once-popular video game retailer.
Source: Daily Dot, RetailDive