GameStop Stock Prices Drop Following Mass Layoffs
GameStop's stock prices have taken a hit once again, as news breaks of mass layoffs across the company. This includes now-former chief financial officer, Mike Recupero, who is being replaced due to the company "haemorrhaging cash" in recent months.
At their lowest point today, GameStop shares reached $122, down from a peak of $142 just before the news broke. This comes as those affected by the layoffs speak out on social media, and many condemn GameStop for laying off so many workers while still pursuing its NFT business during a crypto crash.
The reaction to this news in the stock market paints a picture of little confidence in GameStop's ability to turn its financial woes around. While it did admittedly benefit from the news initially, reaching highs of $135 per share on July 7, that quickly came back down as more details were released, making it clear that there was change at an executive level.
From the start of 2022, GME's value has dropped by -15.90 percent. Its highly publicized venture into the NFT space has done little to turn this around.
As for the real impact of the layoffs, it's not known where the bulk of them will come from. However, many content creators over at Game Informer have already reported job losses, and it appears that those on the site's video production team have been hit the hardest.
It remains to be seen how those who work across GameStop's brick-and-mortar stores are affected, although they are already facing their own issues. As we reported last month, employees in one location walked out over poor working conditions, stating that management has "no respect for [them] as employees or as human beings."
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