(Boursier.com) — GameStop jumped last night by 15% on $135 on Wall Street, boosted by the announcement of a “split” four against one. Concretely, the shareholders on the registers at the close of the meeting of July 18, will receive three additional securities for each share held, in the form of a stock dividend. This decision of the board of directors will make it possible to increase the liquidity of the stock. The stock dividend will be distributed after the July 21 close. The title will list “adjusted for the split” on July 22. The group had mentioned in March the possibility of this division of the title, without specifying the terms. This is the second split in GameStop history, following a halving in March 2007.
The title nevertheless fell by 6% after trading yesterday, GameStop having in the process announced significant changes in the workforce. The group is thus separating from its financial director and will proceed with layoffs, while investing in store jobs. This is at least what reveals an internal message and a source close to the file quoted by a journalist from Yahoo!. “Change will be a constant as we scale our business and launch new products through our blockchain group,” Gamestop CEO Matt Furlong wrote in an internal memo. “After investing heavily in people, technology, inventory and supply chain infrastructure over the past 18 months, our goal is to achieve sustainable profitability. This means eliminating excess costs and operating with an intense owner mentality”. According to a Yahoo! source, the extent of the workforce cuts is unclear. A reduction of 25% would be possible, but could only include the corporate workforce and not those of the stores. Furlong, on the other hand, indicates that significant investments will be made in store managers and network jobs. Details will be provided in the coming weeks.
GameStop also announced that its chief financial officer, Mike Recupero, who had held the position for over a year, was leaving the company and would be replaced by chief accounting officer Diana Jajeh.
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