More tough news for once-popular gaming retail chain GameStop, which has recently run into concerning financial troubles (a 36% drop in stock value—the lowest it has been since 2013) following the ever-growing digital age of videogames. In short, people just don’t really buy physical copies of games anymore.
As pointed out by Game Rant, it’s being reported on the company’s subreddit that a large swath of GameStop managers are being laid off from their jobs—as of this writing, the number of those affected is sitting around 50.
Over on the GameStop subreddit, multiple employees of the retailer have been checking with their colleagues on the status of their management. Many of them stated that both their District and Regional managers had been let go from their positions.
This isn’t a huge surprise—GameStop’s drop in revenue (they reported a $673 million loss for 2018) and stock value led many to assume that the company would ultimately begin restructuring to cut costs, and that almost always results in mass layoffs.
Another part of the restructuring plan will eventually involve store concept redesigns that focus more on retro gaming hardware and software in an effort to get consumers to visit physical GS locations.
As for how GameStop will compensate those affected by the layoffs, we aren’t yet certain.