GameStop, the well-known gaming retailer, is implementing significant changes to its employee benefits. Starting in 2024, the company plans to increase healthcare costs and eliminate several benefits. These include basic life insurance, accidental death coverage, and disability insurance. Additionally, GameStop will no longer match 401k contributions. Reports indicate that these changes could double the annual health insurance costs for employees.
Changes to pro membership rewards
The retailer’s Pro membership program is also undergoing alterations. Effective December 1, the monthly $5 coupon will no longer be applicable to gift cards or digital products. New members will see a reduction in welcome points, decreasing from 10,000 to 5,000. Renewing members will lose the previous $5 benefit. Despite these reductions, the annual membership fee will remain at $25.
Warranty policy shift
GameStop‘s warranty policy is facing scrutiny. Employees report a new directive to replace warrantied new items with used products. Additionally, if a used replacement is not available, customers may be directed to other stores. This policy affects various products, including high-value items like gaming consoles.
Internal criticism and leadership decisions
The company’s leadership, particularly CEO Ryan Cohen, is facing internal criticism. Cohen, who joined the board in 2021 and later appointed himself CEO, has been associated with a series of layoffs and executive departures. His management decisions, including the recent cuts, have sparked discussions among employees and the public.
In a contrasting move, CEO Ryan Cohen offered Texas Rangers players $1,000 GameStop gift cards after their World Series win. This gesture has been met with mixed reactions, especially in light of the recent benefit reductions.
GameStop’s response
As of now, GameStop has not issued a comment regarding these reports. GameStop’s recent decisions reflect a shift towards aggressive cost-cutting. The reduction in employee benefits and changes to the Pro membership program suggest a focus on improving profitability. The warranty policy change could impact customer satisfaction and trust in the brand. These strategies come at a time when the company is reportedly holding a significant amount of cash reserves.
The internal criticism of leadership points to potential unrest within the company. Employees and observers are questioning the timing and nature of the CEO’s promotional activities against the backdrop of cost reductions.
As the situation develops, stakeholders are watching to see how these changes will affect GameStop’s operations and reputation.
