Gamestop Corp. Lays Off 120 Employees

The cuts affected nearly 14 percent of the associate base at the company's corporate headquarters, as well as at subsidiaries such as 'Game Informer' magazine.

GameStop Corp., the parent company of the video game retail chain of the same name and monthly gaming magazine Game Informer, has laid off more than 120 employees, representing "approximately 14 percent" of the company's total associate base at its headquarters as well as "some other offices," The Hollywood Reporter has confirmed.

"While these changes are difficult, they were necessary to reduce costs and better align the organization with our efforts to optimize the business to meet our future objectives and success factors," a spokesperson for GameStop tells THR. "We recognize that this is a difficult day for our company and particularly for those associates impacted. We appreciate their dedication and service to GameStop and are committed to supporting them during this time of transition."

In recent months, GameStop has reported a notable decrease in sales. In May, the company reported a 13 percent decrease in total sales over its first quarter.

In March, GameStop hired George Sherman as its new CEO, the fifth leadership change at the company in less than two years, who vowed to "transform the business."

Former editors and writers for Game Informer tweeted out the news of their layoffs earlier on Tuesday. The magazine, which released its first issue in August 1991, has been owned and published by GameStop Corp. since 2000. As of 2017, it had a circulation of over 7.5 million readers.

GameStop Corp. declined to share the number of employees at each office affected by the layoffs.

On Wednesday, Game Informer editor-in-chief Andy McNamara posted his own statement about the layoffs, revealing that seven staffers had been let go from the publication. "I’m saddened by yesterday’s news; the Game Informer team means the world to me," he said. "You, our readers who have supported us over the years – mean the world to us. I can’t thank them or you enough. "

Aug. 21, 2:35 p.m. Updated with McNamara's statement