An almost inevitable part of any corporate merger or acquisiton involves the layoff of staff from one of the companies involved in the transaction and the recent merger between Electronics Boutique and Gamestop is no exception to this type of event. According to the Philadelphia Business Journal, GameStop has announced the closure of EB's Philadelphia headquarters and associated warehouses with the loss of 576 full-time positions and 159 seasonal and part-time positions.
The newspaper reports that the downsizing will occur steadily through the summer of 2006 with the final result being the total rebranding of all EB-associated retail outlets and facilities converted to the GameStop name. To ease the transition somewhat, GameStop has offered relocation packages for some former EB employees to its Grapevine, Texas headquarters.
No further job cuts have been announced at this time; however, industry analysts believe that further job cuts are inevitable due to the expected closure of some of the 4,200 retail outlets under the control of the combined company. Many of these retail outlets are in close proximity to each other and thus represent logical targets for consolidation.
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