GameStop’s new CEO, Ryan Cohen, has sent a memo to employees outlining his determination to turn around the struggling video game retailer. Cohen, a billionaire activist investor and founder of Chewy, emphasized the need for “extreme frugality” and cost-cutting measures to ensure GameStop’s survival.
In the memo, Cohen stated, “Our job is to make sure GameStop is here for decades to come. Extreme frugality is required. Every expense at the company must be scrutinized under a microscope, and all waste must be eliminated. The company has no use for delegators and money wasters. I expect everyone to treat company money like their own and lead by example.”
Cohen’s commitment to cost reduction is evident in the fact that he will not receive a salary in his new role as CEO. His appointment comes as GameStop continues its efforts to reinvent itself in the face of changing consumer trends in the video game industry.
GameStop, once known for selling video games, consoles, and gaming merchandise, has struggled to remain relevant as customers increasingly turn to online gaming and digital downloads. The company has explored new business avenues, such as launching an NFT marketplace and partnering with cryptocurrency exchange FTX.
Cohen’s memo reflects his focus on profitability and efficiency as GameStop seeks to navigate the challenges of the retail industry and secure its future. GameStop shares closed at $16.84 on the day of Cohen’s appointment, down nearly 9% for the year and far below their all-time high in early 2021.
Cohen’s history with GameStop includes his investment during the “meme stock” frenzy, and he joined the company’s board in 2021. Now, as CEO, he aims to steer GameStop toward long-term success through careful financial management and a commitment to survival in a competitive retail landscape.
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