Ryan Cohen, the newly appointed CEO of GameStop, has wasted no time in outlining his plans to rescue the struggling retail giant. In a memo sent out to employees, Cohen stressed the importance of extreme frugality and cutting out all unnecessary expenditures in order to make the company profitable and resilient in the face of challenging times.
As a billionaire activist investor and the founder of Chewy, Cohen brings a wealth of experience to the table. Having previously served as GameStop’s executive chair, he is familiar with the company and its struggles. In a bold move that underlines the company’s dedication to reducing costs, Cohen has decided not to accept a salary in his new role.
The video game retailer has been grappling with a decline in relevance as more customers opt to purchase games online. In an attempt to diversify its offerings, GameStop has ventured into new businesses, such as launching an NFT marketplace and forming a partnership with a now bankrupt cryptocurrency exchange. However, these ventures have not been enough to reverse the company’s fortunes.
GameStop has also experienced significant turbulence in its leadership team, with the previous CEO and CFO being fired. This instability, coupled with a nearly 9% drop in stock price this year and a net loss in the second quarter, has left the once-mighty retailer in a precarious situation.
In his memo, Cohen emphasizes the urgent need for survival and caution against self-destructive mistakes in order to secure GameStop’s long-term existence. He calls on employees to work diligently and expresses his personal commitment to turning the company around.
As this story continues to develop, updates on Cohen’s efforts and GameStop’s progress are sure to follow. Stay tuned to ‘Poh Diaries’ for the latest information on this critical turnaround story.
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