Video game retailer GameStop GME-N 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 per cent in extended trade after the results.
U.S. video game publishers Take-Two Interactive Software and Electronic Arts 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 video game 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 and Ebay.