GameStop COO Quits After 7 Months — What This Could Mean for Company Stock
After only seven short months, GameStop’s executive vice president and chief operating officer Jenna Owens has left the company. Reuters reported that while there was no reason provided for Owens’ departure, the company said in a regulatory filing that it and Owens had reached a “separation agreement,” which is typical when companies and executives do not see eye-to-eye. The agreement went into effect on Oct. 25.
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Last year, GameStop stocks took a tumble and net sales in the third quarter of 2020 were down more than 30% compared to the same period in 2019. The company attributed the drop in sales to a number of reasons, including an “11% reduction in the store base,” according to ABC News.
At the beginning of the new year, the company announced three new directors — Alan Attal, Ryan Cohen and Jim Grube — had joined its board. Days later, retail traders began to drive up company stock by more than 2,500%, noted Reuters. GameStop is now valued at roughly $14 billion.
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Since becoming chairman in June, Cohen has been pushing to improve the customer experience; however, Reuters noted that a detailed plan has not been offered. Cohen and new chief executive officer Matt Furlong have let go of several senior employees recently who have not “fit their system,” said Reuters.
GameStop has recently been working on distribution challenges. The company typically ships a lot of inventory for its online orders from its stores, which adds days or weeks to delivery times. To help, the company has been leasing more warehouses. GameStop also plans to expand customer service by telephone, chat or other electronic means.
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According to Reuters, Cohen sees these changes as necessary to adjust to the changing landscape.
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Last updated: November 1, 2021
