GameStop fires CEO and hires new executive chairman

The firm decided to fire its chief executive after 2023 kicked off in the red.

GameStop chief executive Matt Furlong has been fired from the American video game retailer.

After two years with the company, Furlong's role has been terminated from overseeing the retailer’s expansion into NFT collectibles.

Although there has been no official replacement announcement, the firm’s board of directors have elected Ryan Cohen as its executive chairman, effective immediately.

Moreover, GameStop did not announce why Furlong’s role was concluded, however, the news does follow the company reporting a disappointing first quarter for its 2023 fiscal year, with a net loss of $50.5m for the period.

The firm said that although the former employee was let go “without cause, leadership transitions can be “inherently difficult to manage.”

“Failure to timely or successfully implement transitions may cause disruption within the company, including the execution of our transformational plans,” said the firm in a 10-Q filing with the US Securities and Exchange Commission.

“This may adversely impact our financial performance and ability to meet operational goals and strategic plans, our ability to retain and hire other key members of management, and the market price of our Class A common stock.”

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Written by Isabella Aslam

Reporter

Isabella is an experienced writer in B2B and B2C journalism. Alongside crypto, Isabella writes and discusses the topics of relationships and psychology. Isabella holds a first-class degree in music journalism and often interviews electronic artists and DJs.