GameStop cuts jobs, quarterly revenue declines

(Reuters) – Video game retailer GameStop said on Tuesday it was cutting an unspecified number of jobs to cut costs and reported lower fourth-quarter revenue amid growing competition from e-commerce companies and weak consumer spending in an uncertain economy.

Shares of the Grapevine, Texas-based company fell 15% in extended trading after the results.

US video game publishers Take-Two Interactive Software and Electronic Arts also posted lackluster profits last month as the gaming industry faces pressure from high borrowing costs, flat inflation and slowing demand from the height of the pandemic.

GameStop reported revenue of $1.79 billion for the fourth quarter, compared to $2.23 billion a year earlier.

The video game retailer's recent cost-cutting measures also included exiting its operations in Ireland, Switzerland and Austria.

On an adjusted basis, the company reported fourth-quarter earnings per share of 22 cents, compared to 16 cents a year earlier.

GameStop is also grappling with the ongoing shift to digital sales of video games and competition from online retailers such as Amazon.com and Ebay.

(Reporting by Harshita Mary Varghese and Priyanka G in Bengaluru; Editing by Devika Simnath)

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