GameStop fired its CEO, Matt Furlong, and elevated Ryan Cohen to executive chairman, the company announced on Wednesday.
The company did not provide a reason for Furlong’s termination, nor did it respond to CNN’s request for further information. However, according to a company filing with the Securities and Exchange Commission, Furlong will be entitled to receive payments and benefits associated with a termination without cause. Furlong had been GameStop’s CEO since 2021.
The company also released its first-quarter results on Wednesday, reporting revenue of $1.24 billion, down from $1.38 billion during the same period last year.
GameStop (GME) also reported a net loss of $50.5 million, compared to a net loss of $157.9 million in the first quarter of 2022. The loss comes just a few months after GameStop (GME) reported its first quarterly profit in two years.
GameStop canceled its regularly scheduled quarterly conference call to discuss the company’s earnings.
Shares of GameStop tumbled nearly 20% in after-hours trading on the news of the company’s financial results and C-suite shakeup.
Chewy co-founder Ryan Cohen joined GameStop’s board in 2021 after acquiring a nearly 13% stake in the gaming company. GameStop became a poster child for that year’s “meme stock rally,” fueled in part by investors’ hopes that Cohen’s e-commerce experience could help revamp GameStop’s financials.
GameStop, along with Bed Bath & Beyond (BBBY), AMC Entertainment (AMC), and other stocks, experienced intense volatility as they gained popularity among retail investors on social media, particularly Reddit’s WallStreetBets forum, in early 2021.
During this period, GameStop’s stock surged to an all-time intraday high of $483, before falling. The stock closed around $26 on Wednesday.