A few weeks ago, GameStop finally stopped operating in Massachusetts after the government was involved. According to GameStop, they were operating despite lockdown, because they said they were offering essential service. The game store has been heavily criticised on social media for firing several hundreds of employees and opening stores, despite the COVID-19.
As we all know, GameStop is on the verge of completely getting closed. The game store has already closed more than 500 stores in the past two years, and they plan to close 300 more in 2020. GameStop was very successful when it first came out, however as digital game purchasing and Amazon progressed, GameStop became useless.
Today, the company has announced that their executives will also take pay cuts.
““We continue to proactively manage our business with a goal to increase financial flexibility and preserve cash flow in the current environment. Today, we announced salary reductions for our senior management team and board of directors, as well as wage rate reductions for some other corporate and field support staff.”
George Sherman, who is the CEO of GameStop has agreed to take a base salary reduction of 50%. Similarly, Jim Bell, the financial officer along other leaders have taken a 30% reduction in their salaries. Moreover, Directors will receive 50% less cash, which they get as compensation from the board of directors. Apart from the seniors, other minor positioned employees will also receive pay cuts and furloughs.
GameStop will also open several stores in coming weeks.
GameStop has also announced that various stores in Italy, Germany, Austria, and the States of South Carolina and Georgia will be re-opened. Along with that, one-third of U.S. stores will remain closed and all stores in Australia will remain open.