Why GameStop Stock Is Falling After Hours

GameStop Corp GME shares are trading lower in Thursday's after-hours session following reports that the company's CFO, Mike Recupero, has departed. The retailer is also reportedly planning company-wide layoffs. 

According to a tweet from Axios reporter Stephen Totilo, GameStop is planning to cut some of its staff after adding 600 corporate hires over the last year. 

"Unclear how hard people have been hit but doesn't sound small. 'A number of reductions,'" Totilo said, citing an internal memo.

The company memo reportedly discusses the company's evolving commerce business and its jump into blockchain tech. GameStop also plans to invest in store leaders and field employees. It's not clear if Recupero stepped down on his own or was let go. Diana Jajeh is reportedly set to take over as CFO. 

GME Price Action: GameStop traded higher Thursday after its board approved a four-for-one split in the form of a stock dividend, however it's giving up those gains in after-hours trading. 

The stock was down 8.28% in after hours at $123.76 at press time, according to data from Benzinga Pro.

Photo: Mike Mozart from Flickr.