GameStop cuts jobs as quarterly revenue falls

GameStop‘s troubles don’t seem to be anywhere near ending as the company reported on Tuesday that it had cut an unspecified number of jobs to help reduce its overall costs. The long-running firm also reported lower fourth-quarter revenue. Reuters says that GameStop is continuing to face huge competition from other online retailers and weak consumer spending in an uncertain economy isn’t helping matters.

“An increasing mix of digital downloads is hurting physical retail, and there is simply no reason to go to the store if a consumer can just order a game and download it immediately,”

“I suspect that they will keep trimming costs to generate breakeven or better, but it is inevitable that their sales will decline to an unsustainable level,”

Wedbush Securities analyst Michael Pachter

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