Published , by Donovan Erskine
Published , by Donovan Erskine
Earlier today, GameStop (GME) appointed Executive Chairman Ryan Cohen to be the company’s next CEO. This comes after the previous CEO, Matt Furlong, was fired from the role back in June. Cohen has an intimate understanding of GameStop, and didn’t waste time letting his employees know his goals for the future after getting the new title. He’s expressed that frugality will be GameStop’s key to survival and that he hopes to have the retailer around for decades.
Ryan Cohen sent out a memo to employees today after he was named the new CEO of GameStop. The memo was obtained by CNBC, and provides an insight into what Cohen has in store for the business. “Our job is to make sure GameStop is here for decades to come,”Cohen said to employees in today’s email. “Extreme frugality is required. Every expense at the company must be scrutinized under a microscope and all waste 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.”
Given GameStop’s recent track record, it’s no surprise that Cohen wants to be very careful about where the company is putting its money and resources. Back in May, GameStop closed all 35 of its Ireland locations. In recent quarters, we’ve seen the company’s cash holdings steadily decrease, leading many spectators to theorize how long the company can continue to operate the way it currently does. In Q2 2023, GameStop’s cash holdings decreased by $164.6 million to $915.2 million.
With frugality at the front of mind for GameStop’s new CEO, we’ll be quite curious to see what that means for the company’s physical locations and other business ventures. To keep up with everything happening in the world of GameStop, stick with Shacknews.