GameStop (NYSE: GME) announced that it has fired its Chief Financial Officer, Mike Recupero, as it makes staff cuts throughout various departments amid an aggressive turnaround plan. According to a person familiar with the situation, Recupero was fired because he was “too hands-off,” and was pushed out by the company’s chairman Ryan Cohen.
Chief Accounting Officer Diana Jajeh will be taking over as the new CFO. According to a filing with the U.S. Securities and Exchange Commission, Jajeh’s starting salary will be USD200,000.
CEO Matt Furlong wrote a letter to employees where e states that GameStop is focused on “eliminating excess costs and operating with an intense owner’s mentality.” Furlong continued on to say that “everyone in the organization must become even more hands-on and embrace a heightened level of accountability for results.”
The company has hired over 600 workers since the beginning of 2021 and is now aiming to reduce that expansion as a means of cutting expenses. GameStop’s shares fell 5% in premarket trading Friday amid the news.
“After making more than 600 corporate hires in 2021 and the first half of 2022, we have a stronger understanding of our transformation needs,” said Furlong in the memo. “This has positioned us to right-size headcount across several corporate departments.”