GameStop lays off employees, citing inflation, consumer confidence

The world's largest video game retailer, GameStop, laid off staff this week, particularly in its divisions of cryptocurrencies andBlockchain, citing weakened consumer confidence and punishing inflation.

Ahead of an earnings report this week, GameStop CEO Matt Furlong told workers that layoffs were required. Furlong, who takes home a salary of $16.8 million, told staff that they had completed several projects that were part of the initial phase of our transformation.

In addition to that, we have gained clarity regarding the right level of corporate staff needed to achieve our growth and profitability goals. These two factors were a factor in the decision that was taken across the organization. GameStop unveiled a new NFT marketplace and a non-fungible wallet earlier this year, indicating its growing interest in digital collectibles. The company had hired more than 20 people to work on the NFTs in a move to resuscitate the meme-stock company and bring it into a Web 3 era.

Employees in the GameStop divisions are taking to social media platforms like LinkedIn to confirm the layoffs.

I was impacted today by layoffs at GameStop. Brandon Jenniges, an engineer in GameStop's space, said he had a great time getting a deep dive into ether and learning about many new things in the space.

This year marks the third layoff for the popular meme-stock store, with its stock prices climbing 500% since its revival. In the last month, GameStop ended its marketing partnership with the bankrupt firm FTX.US. The retailer was planning to offer FTX gift cards to customers, a plan that has been derailed by the collapse of FTX this winter.