GAME to axe 46 jobs (From Hampshire Chronicle)

GAME to axe 46 jobs

3:15pm Thursday 9th February 2012 in Hampshire Business By Richard Garfield

MAJOR Basingstoke employer GAME Group is to axe nearly 50 jobs at its town headquarters.

The UK’s largest specialist videogame retailer, based at Unity House, Telford Road, on the Houndmills Industrial Estate, has announced 46 job losses, which is thought to represent about 10 per cent of the local workforce, due to an internal restructure to “better to respond to the current video games market”.

Simon Soffe, investor relations and group communications director, said: “As part of our strategy to position GAME for future success, we have outlined a number of proposed changes in our head office structure.

“These changes reflect the growth of our multi-channel operations and the progress of our Dedicated to Gaming strategy. They will also position us better to respond to the current video games market.

“It is with regret that the proposed restructure will result in around 46 fewer roles at our central support centre in Basingstoke.

“Our proposed new structure will change the way that we operate and will enable us to be significantly more efficient in our relationships with suppliers and customers.

“We are giving our full help and support to the colleagues who are affected by these proposed changes.”

Managing director Tom Devine is now channel director, with responsibility for GAME’s store and ecommerce operations. Former commercial strategy director Tricia Brennan is now chief commercial officer, with responsibility for all of GAME’s customer offerings and supplier partnerships.

Another change at the top sees Dave Hughes, who is currently chief marketing officer, leaving the company in March.

“Dave has made a huge contribution to the progress of key elements of the group’s strategy over the last year, overseeing the re-launch of the GAME.co.uk website, a significant increase in ecommerce market share, and the evolution of our CRM strategies,” said Mr Soffe.

Last week, GAME struck a deal with its banks which may see it sell its overseas stores. Led by RBS, its lenders have agreed to new terms after the company agreed to operate within lower lending limits.

GAME has also agreed to provide an updated strategic plan for review, and approval in part, by the lenders. This plan will cover all aspects of the business's activities and strategy.

Ian Shepherd, chief executive of GAME, said "We're pleased to reach agreement with our lenders, but should be under no illusions about the challenges in our market or the hard work that is required to deliver our strategic plan."

Last year the company issued a series of profit warnings as sales fell, and last week it announced that it would make an £18million loss for the year to January 31. The company has been hit by intense competition from supermarkets and online competitors.