GameStop Fires its CFO and Announces Layoffs

As part of an aggressive turnaround strategy, GameStop has removed its Chief Financial Officer, Mike Recupero, and is undertaking personnel reductions across divisions, the gaming retailer stated on Thursday. Recupero, who started working for the firm just over a year ago, was “fired because he was not the appropriate cultural fit” and “too hands off,” a source with knowledge of the situation told CNBC. Ryan Cohen, the CEO of GameStop, allegedly forced him leave.

The company’s chief accounting officer, Diana Jajeh, will take on the role of CFO. According to a filing with the U.S. Securities and Exchange Commission, she will begin with an annual salary of $200,000 and be qualified for a “transformation bonus” for a total of $1,965,000. The individual familiar with the situation said that the layoffs, which were disclosed in a message to staff that CNBC was able to get, will be on the corporate side of the business rather than at its shops and are meant to “remove bloat” while GameStop invests in other areas.

The established brick-and-mortar shop has been attempting to reinvent itself in order to keep up with the online-dominant videogame industry. The company’s recovery will be led by Chewy creator Cohen, who was chosen last year. He hired a new group of business executives, including Recupero, a former employee of Amazon, and CEO Matt Furlong.

The message announcing the adjustments states that the business has hired more than 600 corporate employees since the beginning of 2021. GameStop stock has also attracted more interest since it regularly gets caught up in the meme stock craze and has significant price movements.