AM I NEXT? NO LOVE AT GAMESTOP (12/08/22)

Am I Next? GameStop lays of 14% of staff in cost-cutting move.

DECEMBER 8, 2022 — MORE LAYOFFS

GameStop has announced another round of layoffs due in part to inflation and weakened consumer confidence about the market.

CEO Matt Furlong noted, “Now that we are emerging from the rebuilding phase of our transformation, GameStop has a strong foundation from which to pursue profitability in the near-term and sustainable growth over the long term. As part of this process, the company came to a realization about the right level of corporate staff required to reach its profitability and growth goals, and is making these cuts as a result.”

JULY 8, 2022 — PAIN ON THE WAY

Chief Financial Officer Mike Recupero is leaving amid company-wide job cuts that will impact the parent company and online magazine Game Informer. an online magazine.

JANUARY 28, 2021 — THE REVOLUTION, PUSHBACK AGAINST HEDGE FUNDS. WAS GAMESTOP GIVEN A NEW LEASE ON LIFE?

Hedge funds and professional investors were betting that GameStop stock was going to zero and they could make “big money” in the process by selling short—selling stock they borrowed for a fee or using various options, hedged and unhedged, to trade.

With massive negative publicity in the mainstream media, they were slowly crushing the stock — HOPING TO RETURN THE STOCK THE BORROWED STOCK THEY SOLD AT A HIGHER PRICE WITH STOCK THEy PURCHASED AT A LOWER PRICE — THUS POCKETING THE DIFFERENCE.

A number of individuals, mostly millennials, got together on a social media platform known as Reddit and decided to purchase GameStock stock and defy the hedge short-sellers — massively raising the price.

Unfortunately, more than 140% of the existing GameStock was leveraged. So as the price rose, those who held options that required that the price drop found they were worthless — or those who needed to cover their short sales at rising prices sold their stock for higher and higher prices, the stock hyperinflated and the hedge funds lost massive amounts of money and the individual players had a nice payday at their expense.

However, this is what is supposed to happen in favor of the big investors — with the little guy taking a bath. This phenomenon so concerned the financial institutions, stock exchanges, and the big investors that the government, and the social media platforms they are now exploring ways to, once again, protect the big guys.

To be noted: nothing about GameStock really changed except the price of its stock. If management did not cash out, they might be able to use their newly-inflated stock to boost their online presence or pivot.

SEPTEMBER 11, 2020 — AT LEAST 400 STORES WILL BE CLOSED BY THE END OF 2021

The company has increased the number of stores to be closed by 2021 to 400 due to revenue shortfalls. The company continues to struggle financially adding to employee stress.

AUGUST 22, 2019 — Original post…

Grapevine, Texas-based GameStop, a major video game and consumer electronics retailer, continues to struggle financially as consumers abandon brick-and-mortar stores for the convenience of online purchases, especially for downloadable products. In an attempt to further reduce costs, GameStop has laid off more than 120 corporate staff employees, including those in email marketing, inventory management, licensing, and other departments. Many of the job losses are said to have been associated with the company’s print and digital publication, Game Informer.

A company spokesperson noted, “As part of the previously announced GameStop Reboot initiative to transform our business for the future and improve our financial performance, we can confirm a workforce reduction was implemented impacting more than 120 corporate staff positions, representing approximately 14% of our total associate base at our company headquarters as well as at some other offices. While these changes are difficult, they were necessary to reduce costs and better align the organization with our efforts to optimize the business to meet our future objectives and success factors. We recognize that this is a difficult day for our company and particularly for those associates impacted. We appreciate their dedication and service to GameStop and are committed to supporting them during this time of transition."

The company continues to struggle with major losses and a reported failure to find a white-knight buyer for the company.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT ADP (UPDATED)

Am I Next? ADP layoffs in Owings Mills, Maryland.

September 27, 2019 — RUMOR HAS COS DOWNSIZING IN 2020 AND OPERATIONS TRANSFERRED TO INDIA.

The jungle drums are beating that the company’s Comprehensive Outsourcing Services division will be downsizing in 2020 and the operations transferred to India. The key determinant behind the rumor appears to be the number of major clients whose contracts are expiring.

Will this rumor be considered the “Handwriting on the Wall?”

Original Post…

Roseland, New Jersey-based ADP, one of the largest non-bank payroll and human resource services provider, has announced that they will be closing their Owings Mills, Maryland office and laying of 13 employees commencing on September 27, 2019. According to a company spokesperson, “We continuously monitor our operations for optimization opportunities. Any actions we may take from time to time are part of our usual operations to manage the business strategically. We are very appreciative of the contributions of this team and have support systems in place to help with their transition. We have also arranged to accommodate work from home as appropriate.”

According to a statement accompanying ADP’s fourth quarter and fiscal 2019 results, “ADP remains committed to reinvesting in its product, distribution, and service to drive sustainable growth,” said Kathleen Winters, Chief Financial Officer, ADP. “And we are moving forward with our transformation initiatives as we look to both simplify the organization and enhance our competitive positioning. The company also noted that they completed a voluntary early retirement program with an annualized recurring cost saving of $150 million. Having completed our hiring needs in fiscal 2018, we exited the remainder of our previously identified 68 subscale service locations for an annualized recurring cost saving of approximately $60 million.”

“First, during the fourth quarter of fiscal '19, we recorded a severance charge of approximately $26 million related to a broad-based workforce optimization effort focused on spans of control and management layers throughout the organization. Second, this year we're accelerating our procurement transformation efforts through a number of initiatives aimed at third-party vendors and internal expense management. These two initiatives combined are expected to generate about $100 million of savings in fiscal 2020.”

It is believed that the company is relying on additional cloud-based self-service automation and the desire to reduce expenses by transitioning some employees to a “work at home” model. This is not likely to be the only location affected by ADP’s business plan.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT TRAMONTINA

Am I Next? Tramontina Cookware moving manufacturing to Brazil.

Sugar Land, Texas-based Tramontina, an aluminum cookware manufacturer and subsidiary of Rio Grande do Sul, Brazil-based company, has decided to cease manufacturing and assembly in the United States and consolidate production in the company’s 10 facilities in Brazil. The decision was driven by financial considerations and the rising cost of materials, labor, and transportation.

As a consequence of this decision, 108 employees assembly employees will be laid off in Sugar Land, Texas and is shuttering its manufacturing facility in Manitowoc, Wisconsin which will result in the loss of another 145 jobs. The layoffs in Wisconsin will begin around August 31, 2019 and those in Sugar Land beginning in September, 2019.

A company spokesman noted, “This is an extremely difficult announcement. Due to the production cost increases over several years, our shareholders decided to cease manufacturing operations at our U.S. facility as a strategic step towards consolidating our production within the group’s existing factories in Brazil, which allows us to focus more on product development, sales and logistics in the U.S.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?