GameStop Corp Says Recently Undertaken Cost Reduction Measures To Improve The Efficiency Of Our Operations, Including Initiatives To Reduce Headcount; During Fiscal 2023, We Exited Our Operations In Ireland, Switzerland, And Austria; Decline In SG&A Expenses In Fiscal 2023 Vs Prior Year Primarily Due To $316.3M Reduction In Labor-Related Costs, Marketing Expenses Etc.
Portfolio Pulse from Benzinga Newsdesk
GameStop Corp has implemented cost reduction measures to enhance operational efficiency, including headcount reduction. In fiscal 2023, GameStop exited operations in Ireland, Switzerland, and Austria, leading to a significant decline in SG&A expenses compared to the previous year, mainly due to a $316.3M reduction in labor-related costs and marketing expenses.
March 26, 2024 | 8:23 pm
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GameStop's strategic cost reduction measures, including workforce reduction and exiting operations in three countries, led to a significant decrease in SG&A expenses, primarily from a $316.3M reduction in labor and marketing costs.
GameStop's announcement of cost reduction measures, including significant labor-related savings and exiting less profitable markets, is likely to be viewed positively by investors. These actions suggest a strategic shift towards operational efficiency and could lead to improved profitability. The substantial reduction in SG&A expenses, particularly the $316.3M decrease in labor and marketing costs, indicates a focused effort to streamline operations and reduce overhead, which could enhance GameStop's financial performance in the short term.
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