GameStop shares tank as company cuts jobs, quarterly revenue falls
A GameStop location on 6th Avenue in New York on March 23, 2021.

GameStop said on Tuesday it had cut an unspecified number of jobs to reduce costs and reported lower fourth-quarter revenue amid rising competition from e-commerce firms and weak consumer spending in an uncertain economy.

Shares of the Grapevine, Texas-based company tumbled 17% in extended trade after the results.

Soft consumer spending has weighed on the gaming market over the past few months, with U.S. videogame publishers Take-Two Interactive Software and Electronic Arts reporting earnings below estimates last month.

GameStop posted revenue of $1.79 billion for the fourth quarter, compared with $2.23 billion in the same quarter a year earlier.