Despite the COVID-19 pandemic continuing unabated, GameStop is already in the process of reopening some of its stores around the world, along with temporary pay cuts for executives and “certain other employees.” Cash compensation to the board of directors will also be reduced. As of right now, about one-third of GameStop’s stores in the US are closed completely, while the other two-thirds offer curbside pickup for purchases.
“The Company has begun the process of re-opening stores in Italy, Germany, Austria and the states of South Carolina and Georgia and is preparing for the potential to re-open in other operating countries and states in the coming weeks,” GameStop said in a release on its site. GameStop didn’t make clear if these reopenings would be limited in some fashion or have increased specific safety measures due to the pandemic.
CEO George Sherman will be taking a 50% pay cut during this time, with a 30% cut for CFO Jim Bell “and the rest of the executive leadership team.” The board of directors—including the newly added Reggie Fils-Aime—will also have its cash compensation temporarily cut by 50%. Other employees across the business will see reductions anywhere from 10% to 30%. Corporate support staff are also being offered the option of a temporary furlough or reduced hours/pay.
GameStop stores closed in the face of the coronavirus pandemic on March 22, though it wasn’t without embattled opposition and claims that it was an “essential business.” It’s unknown just how long these temporary measures and pay cuts will be in effect or what the process of reopening certain GameStop stores will look like. GameStop’s current goal is to “preserve financial health” while waiting for operations as usual to resume. In late March, the company expressed its intentions to close more than 300 stores permanently.
It also said that it’s seen a surge in demand during this time, specifically in fiscal March (ending March 21), though overall sales declined year over year for the nine-week period leading up to April 4, 2020.
[Source: GameStop]
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