The popular video game retailer GameStop is planning to reopen select stores in certain regions amid the coronavirus pandemic. Employees at those locations may see a reduction in payment rates, reports Den of Geek.
The company hopes to stay afloat by resuming business operations in various locations. However, to keep the doors open, certain GameStop employees may see a reduction in their pay rates. Store associates will not be affected by the changes.
According to the press release from GameStop, it is planning "salary reductions" for their "senior management team and board of directors, as well as wage rate reductions for some other corporate and field support staff."
That said, chief executive officer George Sherman clarified that some team members would be given a chance to work under either "half-time/half-pay structure or a temporary furlough program."
Sherman says the situation is still changing as the retailer considers its options. The CEO himself will take a 50 percent reduction in salary while some other employees will have their pay cut between 10 percent and 30 percent beginning this weekend. It seems that the pay cuts will only affect upper management and some field support staff.
Sherman continued by saying that GameStop "will continue to take all of the necessary steps to ensure GameStop remains a strong and vibrant company at the end of this crisis."
Den of Geek reports that GameStop will begin reopening stores in places like Austria, Italy, and Germany. In the United States, stores will look to open in South Carolina and Georgia. The company will continue looking for other locations to reopen soon.
The latest decision by the retailer could be considered controversial.
GameStop has received quite a bit of backlash for its recent decisions amid the pandemic, and these latest policies "suggest that it is not only considering opening stores in potentially dangerous areas but could be sending people to work in those areas for less money."
Previously, The Inquisitr reported that GameStop would permanently be closing 300 locations. It claims the closings are part of an effort to "de-densify," but no details were shared as to which areas would be affected.
This new announcement of reopening certain stores may be part of its plan to keep its business from permanently closing.
The video game store initially tried to declare itself an essential business. It even went so far as to tell its employees to ignore authorities demanding they close during the outbreak.