GameStop Fires CEO, Names Ryan Cohen Executive Chairman

GameStop fired its CEO Matthew Furlong and named Chairman Ryan Cohen as executive chairman effective immediately, the company said Wednesday.

Shares of GameStop fell more than 20% in extended trading after the video game retailer announced the layoffs.

The company did not give a reason for the firing. It said Cohen will be responsible for capital allocation and oversee management.

In a cryptic tweet posted about half an hour after Furlong’s firing was announced, Cohen wrote: “Not for long.”

The activist investor and Chewy founder is known for saying very little in public and making vague statements online.

The decision to part ways with Furlong comes just months after GameStop reported its first quarterly profit in two years while he was at the helm.

The announcement coincided with GameStop’s first quarter financial report. In the three months ended April 29, GameStop reported revenue of $1.24 billion, down from $1.38 billion in the same period a year earlier. It reported a net loss of $50.5 million, or a loss of 17 cents per share, compared with a loss of $157.9 million, or 52 cents per share, a year earlier.

The company incurred USD 14.5 million in transition costs related to the restructuring work in Europe. It noted that it will require more transition costs in the current quarter.

GameStop has improved its margins by dramatically reducing costs. Selling, general and administrative expenses came in at $345.7 million for the quarter, down from $452.2 million in the same period last year.

In a press release, the company said it would not hold a conference call to discuss the quarter’s earnings.

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