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GameStop fires CFO, announces layoffs

GameStop on Thursday fired CFO Michael Recupero while also announcing a wave of layoffs in an internal memo to employees. File Photo by Jim Ruymen/UPI | <a href="/News_Photos/lp/44a4d7ef8722341407415ec6af1443a5/" target="_blank">License Photo</a>
GameStop on Thursday fired CFO Michael Recupero while also announcing a wave of layoffs in an internal memo to employees. File Photo by Jim Ruymen/UPI | License Photo

July 7 (UPI) -- Video game retailer GameStop fired its chief financial officer and announced a series of layoffs on Thursday.

The company publicly announced that it had terminated the employment of CFO Michael Recupero, with Chief Accounting Officer Diana Saadeh-Jajeh stepping into the role.

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Saadeh-Jajeh, who served as interim CFO last year, will earn a starting annual salary of $200,000 and will be eligible for a "transformation bonus" in an aggregate amount of $1,965,000, according to a filing with the U.S. Securities and Exchange Commission reviewed by CNBC.

The company also announced layoffs in an internal email obtained by CNBC and Kotaku that said "reductions" were intended to "reduce bloat" and allow the company to operate more "nimbly."

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"Change will be a constant as we evolve our commerce business and launch new products through our blockchain group," CEO Matt Furlong wrote in the email.

Furlong continued that the company must take bold steps to invest in its digital future.

"This means eliminating excess costs and operating with an intense owner's mentality," he said. "Everyone in the organization must become even more hands-on and embrace a heightened level of accountability for results."

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The layoffs seemed to be focused on GameStop's Grapevine, Texas, headquarters but also appeared to include some staff at video game magazine Game Informer, which the company acquired in 2000, Kotaku reported.

GameStop stock fell 5.61% in after-hours trading after gaining 15.06% during regular trading as investors reacted to the retailer's board approving a 4-for-1-stock split.

Ryan Cohen, founder of online pet goods retailer Chewy, was brought on to lead GameStop's turnaround after it drew attention as a "meme stock" targeted by online traders.

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He brought on new executives including Furlong and Recupero as the company has made more than 600 corporate hires since the start of last year.

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