GameStop seems to be going through one of its toughest phases yet as the largest video game retailer continues to suffer from financial losses. For a lot of people, GameStop stores have been the go-to place for buying physical copies of video games.
Unfortunately, the future of GameStop does not look bright as the management has laid off one of the members from its top management.
On Wednesday, GameStop revealed that it has fired its CEO Matthew Furlong, effective June 5. The reason was not revealed, but as per an 8-K filing at the US Securities and Exchange Commission, Furlong’s contract was a termination agreement of 24 months.
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Ryan Cohen, who posted this tweet right after the announcement, was appointed the executive chairman. Mark Robinson will act as the new General Manager of the company.
Furlong was responsible for launching GameStop’s NFT marketplace in June 2022. The company also partnered with the Web3 gaming platform ImmutableX and provided support to its blockchain game NFTs.
On its first quarter ending April 29, GameStop’s sales fell by 10%. In the US, it recorded a decline of 16%, reducing its sales from $995 million last year to $832 million. Overall, the company has lost $300 million in the previous year.
Despite several management changes, the company does not seem to bounce back. Physical games cannot be something they can solely rely on. With 800 stores closed in 2019 and more on the brink since 2020, it is hard to tell what GameStop plans to do.
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