GameStop, a prominent player in the gaming industry, is strategically closing over 400 stores across 42 states as part of its cost-cutting measures. The company aims to potentially reach a $100 billion market cap, which would allow CEO Ryan Cohen to earn $35 billion in stock options. GameStop had previously shuttered 590 stores in fiscal year 2024 and is now accelerating this trend by planning additional closures in fiscal 2025. With the imminent end of the fiscal year on January 31st, the company is working to meet its targets by reducing its retail footprint significantly.
As of the latest update on January 11th, GameStop has identified 435 stores for closure, marking a substantial reduction from the 2,325 stores it operated in the US as of February 2025. Concurrently, the company is winding down its international presence, already exiting several countries with plans to depart from France within the coming year.
Despite facing challenges in recent years, GameStop seems to be on a path to financial recovery. However, these store closures will result in job losses for thousands of employees. The company has not provided any comments on these developments.
Source: The Verge