GameStop faces ‘unsustainable’ sales decline, cuts jobs to control costs By Reuters

(Reuters) -Videogame retailer GameStop (NYSE:) said on Tuesday it had cut an unspecified number of jobs to reduce costs and reported lower fourth-quarter revenue amid rising competition from e-commerce firms and weak consumer spending in an uncertain economy.

Shares of the Grapevine, Texas-based company tumbled 15% in extended trade after the results.

U.S. videogame publishers Take-Two (NASDAQ:) Interactive Software and Electronic Arts (NASDAQ:) also delivered lackluster earnings last month as the gaming industry faces pressure from high borrowing costs, sticky inflation and a slowdown in demand from pandemic peaks.

GameStop posted revenue of $1.79 billion for the fourth quarter, compared with $2.23 billion a year earlier.

The videogame retailer’s recent cost-reduction measures also included an exit from its operations in Ireland, Switzerland and Austria.

On an adjusted basis, the company reported fourth-quarter earnings per share of 22 cents, compared with 16 cents a year earlier.

GameStop has also been grappling with the ongoing shift to digital sales of video games and competition from online retailers such as Amazon.com (NASDAQ:) and Ebay (NASDAQ:).

(Reuters) -Videogame retailer GameStop (NYSE:) said on Tuesday it had cut an unspecified number of jobs to reduce costs and reported lower fourth-quarter revenue amid rising competition from e-commerce firms and weak consumer spending in an uncertain economy.

Shares of the Grapevine, Texas-based company tumbled 15% in extended trade after the results.

U.S. videogame publishers Take-Two (NASDAQ:) Interactive Software and Electronic Arts (NASDAQ:) also delivered lackluster earnings last month as the gaming industry faces pressure from high borrowing costs, sticky inflation and a slowdown in demand from pandemic peaks.

GameStop posted revenue of $1.79 billion for the fourth quarter, compared with $2.23 billion a year earlier.

The videogame retailer’s recent cost-reduction measures also included an exit from its operations in Ireland, Switzerland and Austria.

On an adjusted basis, the company reported fourth-quarter earnings per share of 22 cents, compared with 16 cents a year earlier.

GameStop has also been grappling with the ongoing shift to digital sales of video games and competition from online retailers such as Amazon.com (NASDAQ:) and Ebay (NASDAQ:).