Gamestop Cuts Hundreds of Jobs 55
1up.com is reporting that in the wake of the Gamestop/EB Games merger, hundreds of employees are getting the boot. From the article: "In addition, GameStop will also be shutting down the EB Games corporate headquarters in West Chester and distribution site in Coatesville, Pennsylvania. Layoffs aren't immediate, however, and will be staggered throughout early next year and into the summer, with some employees having the option of relocating to Dallas, Texas."
Re:This merger is a BAD thing, folks. (Score:5, Informative)
Choice doesn't matter much, you can get whatever you want online. It's going to make used games more expensive if Gamestop.com swallows ebgames.com. For years now you've been able to get 25% off and free shipping at EB Games with the combination of two coupon codes (15% off and free shipping) and your EB Edge card (another 10%). Gamestop only allows one coupon per order (either 15% or free shipping), and their discount card is not usable online. The price of used games just went up 25% for me.
Re:OT- the importance of Dallas to the merged comp (Score:3, Informative)
Re:Sooo... (Score:5, Informative)
No the point of a merger is to increase profitability of both companies.
Of course mergers are never a benefit to the consumer, buying companies shareholders, or the employees of both companies (one gets laid off while the other picks up the slack with no pay raise).
What a short-sighted attitude, mergers != less competition. Sometimes it's better for consumers to get savings from economies of scale at the sacrifice of some competition. As long as an industry continues to have healthy competition (in this case Gamestop goes against Best Buy, Circuit City, CompUSA, Amazon.com, etc.), when two companies merge the new company can be more aggressive relative to the others in the industry, and actually increase competition.
The buying company shareholders can benefit long term by holding a bigger, more profitable company. As for the employees, yes it sucks they lose their jobs, but it's because their jobs are redundant. Jobs exist not to employ people, but to fill a need.
Personally, I think business mergers should be outlawed... It decreases competition and actually hurts capitalism (the economy) in general. Only indviduals should only be allowed to own stock in corporations and corporations should be forbidden in owning stock in other corporations.
As I mentioned before, sometimes it hurts competition, sometimes it helps competition. Forbidding corporations from making investments in other companies hurts capitalism too. Sometimes there are startups with great ideas that need to raise capital, sometimes larger companies need to acquire specific technology to move forward. Many times the big guy, the little guy, and even the consumer wins.
Then again, the stockmarket is a good way to ruin a good company with a good business model, but shitty investors who are out to suck the comapny dry of all its venture capital.
Then again the stockmarket is a good way to make a good company with a good business model even better, and reduce risk to investors. Venture capitalists are typically much more money hungry than stock investors. They are looking for much greater rates of return because they are taking more risk.
Re:Anyone Remember? (Score:2, Informative)