Subject: Survival
I will be straight to the point.
It is not sustainable for GameStop to operate a money losing business. The mission is to operate hyper efficiently and profitably. Our expense structure must allow us to endure any adverse scenario. Whether it’s a difficult economy or revenue deceleration from shrinking software, we must be profitable. 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 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.
Prospering in retail means survival. If we survive, we stay in the game. Survival is avoiding the deadly sins that often lead retailers to self-destruct. This is usually a result of the following - buying bad inventory, using leverage, and running expenses too high. By avoiding these self-inflicted mistakes and focusing on the basics, GameStop can be here for a long time.
I expect everyone to roll up their sleeves and work hard. I’m not getting paid, so I’m either going down with the ship or turning the company around. I much prefer the latter.
It won’t be easy. Best of luck to us all.
Ryan
That’s horrifying. That’s not great for shareholders. Mentioning going down with the ship. I wouldn’t be getting on that ship. This is a complete no go for new investors. This isn’t good at all.
Since when was it so dire. Profitable quarters. Good inventory. No debt. Why the change of heart
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If I was working at GameStop I’d actually find this letter inspiring as it gets everyone focused on profitability and allows them to call out poor decisions, poor planning, mismanagement, etc. People that don’t have that discipline will likely leave.
Yeah. But they are likely working to a normal level. You can’t force profitablity with bad market strategy. If you push the workforce you’ll just get burnout and staff leaving.
It’s either profitable as a company or it isn’t. Cannot and will not squeeze blood from a stone
At the corporate level, it gets everyone focused and aligned with the mission, and if that is where a lot of slop has been in the past then this helps everyone clean it up since it gives them justification for calling it out. We’ll see what happens.
Pretty sure they don’t care. They get paid the same regardless. If you tell me I have to work harder and it’s a sinking ship. I’m looking for a new job. That doesn’t instill confidence