Retailer's Restructuring Efforts to Hit Brick-and-Mortar Locations

GameStop to Close Significant Number of Stores in Cost-Cutting Effort

GameStop, the struggling video game retailer, is planning to close a significant number of its stores in an effort to cut costs and right-size its business. The move is part of a larger restructuring plan aimed at helping the company recover from a tumultuous year that saw its stock price plummet and its sales decline.

According to reports, the company plans to close around 300 stores, which represents roughly 15% of its total global store count. The closures are expected to occur over the next several months and will primarily affect locations that are underperforming or are not profitable.

The move is seen as a necessary step to help GameStop stem its financial losses and improve its overall profitability. The company has been struggling to compete with online retailers and digital game sales, which have eroded its traditional brick-and-mortar business.

In addition to the store closures, GameStop is also implementing a range of cost-cutting measures, including reducing its workforce and streamlining its operations. The company is also exploring new revenue streams, such as its recently launched cloud gaming service, to help drive growth.

The news comes as GameStop's stock price continues to decline, down over 70% in the past year. The company's financial struggles have been well-documented, with a net loss of $163 million in its most recent quarter.

The store closures are expected to result in significant job losses, with estimates suggesting that up to 1,000 employees could be affected. The company is offering severance packages to affected employees and is working to place them in new roles within the company.

The move is seen as a necessary step to help GameStop become a more sustainable and profitable business. The company's CEO, Matt Sandler, has said that the closures are part of a broader effort to "right-size" the business and position it for long-term success.

The store closures are expected to be completed by the end of the year, with the company planning to focus on its most profitable locations and its e-commerce business. The move is seen as a significant step forward for GameStop, which is looking to reposition itself in a rapidly changing retail landscape.