GameStop Layoffs Begin Ahead Of Q3 Earnings: What Investors Need To Know

GameStop Corp GME is stepping back from its aggressive push into Web3/Cryprocurrency.

According to Axios, the meme-dressed company is bracing for another round of layoffs.

And engineers, tasked with building GameStop’s blockchain wallet, will be heavily impacted.

See Also: GameStop Files Trademark For Gamestop Wallet

What Happened: At least six former GameStop engineers have taken to LinkedIn, and Twitter to share that they’ve been laid-off, as the company struggles with its turnaround plan, and apparently its failed push into Web3, spearheaded by chairman Ryan Cohen.

The layoffs come as the game retailer prepares to issue its third-quarter earnings report on Dec. 7, where investors expect improvements in profitability, as management stated they will focus on cutting costs during the second half of the year.

That includes cash compensation reductions and corporate layoffs.

GameStop did not respond to Benzinga’s request for comments.

On Tuesday’s layoffs, Axios says a software engineer at GameStop posted on LinkedIn: "Another big round of layoffs from GameStop currently in progress... E-commerce Product and Engineers... Lots of them."

"Super sad to say I was a part of the layoffs today at GameStop," a second GameStop software engineer wrote, per Axios.

Why It Matters: Back in July, GameStop fired its Chief Financial Officer, Mike Recupero, and was making staff cuts across departments as part of Cohen’s aggressive turnaround plan. Recupero was pushed out by Cohen because he “was not the right culture fit” and was “too hands off,” a person familiar with the matter told CNBC at the time.

GME Price Action: Shares of GameStop are trading 4.97% lower Tuesday to $24.29, according to data from Benzinga Pro.