GameStop Plans to Close Hundreds of US Stores Amid CEO’s Potential $35 Billion Bonus

GameStop, the leading retailer in the gaming industry, is facing significant challenges as it plans to shutter a considerable number of its stores across the United States. Reports indicate that the number of closures could reach at least 410 confirmed store shutdowns, with an additional 11 locations potentially facing the same fate pending confirmation. This development follows the company’s ongoing efforts to optimize its store portfolio amid evolving market conditions and individual store performance assessments.

Massive Store Closures and Strategic Adjustments

GameStop, based in Grapevine, Texas, revealed in its February 2025 SEC filing that it would continue its strategy of closing underperforming stores. This approach had already resulted in the closure of 590 U.S. locations in the fiscal year 2024, and more closures are anticipated in the coming year. Employees hit by these layoffs are understandably upset, especially given recent developments concerning the company’s CEO, Ryan Cohen.

CEO’s Performance-Based Incentive Sparks Controversy

In the midst of store closures, GameStop announced a significant performance-based stock option for CEO Ryan Cohen, potentially worth up to $35 billion. To claim this bonus, however, the company’s market capitalization would need to skyrocket from its current $9.51 billion to $100 billion, alongside achieving $10 billion in Cumulative Performance EBITDA. Although a short squeeze in January 2021 previously elevated GameStop’s stock value, reaching the $100 billion mark remains a daunting challenge with the gaming industry’s ongoing shift towards digital content. The stock option is structured in nine vesting tranches, with the initial target being a $20 billion market cap, which could be more attainable for Cohen.

Global Impact and Operational Restructuring

GameStop’s restructuring extends beyond the U.S., affecting its international operations. The company has sold its Italian division, ceased operations in Germany, Ireland, Switzerland, and Austria, and may close its Canadian operations. Additionally, reports suggest a potential closure of all 38 stores in New Zealand, although this decision is not finalized.