GameStop CEO Ryan Cohen took to X on Tuesday to blame wokeness and DEI for the retail chain’s impending exit from Canada and France. The company, which managed to survive the pandemic thanks to the infamous memestock frenzy, has closed more than 700 stores since 2020 as more game distribution moves digital.
In a release, GameStop said that “as part of an evaluation of its international assets,” the company, “intends to pursue a sale of its operations in France and Canada.” Shortly thereafter, Cohen took to X with his comments on “wokeness” and “DEI.”
“Email M&[email protected] if you’re interested in buying GameStop Canada or Micromania France,” Cohen wrote. “High taxes, Liberalism, Socialism, Progressivism, Wokeness, and DEI included at no additional cost if you buy today.”
Gizmodo reached out to GameStop for comment on its decision to exit Canada and France. According to a recent filing, the company as of late 2024 had more than 200 stores in Canada and 647 stores in Europe.
GameStop’s revenue peaked all the way back in 2011 when it brought in $9.55 billion in sales. That compares to $4.33 billion in 2024, which itself was down 24% from 2023. The company has struggled to fight the broader forces of slowing growth in the game industry and a move to digital distribution—something not every gamer appreciates, but has become the reality as companies like Microsoft seek to package games into Netflix-like subscription bundles. Subscriptions means players do not own their games, but Microsoft and others can generate more consistent streams of recurring revenue as well as access a wider customer base.
Cohen with his post appears to be directly saying his company’s decline in physical footprint is not because of this reality, but rather due to worker-friendly regulations, wage requirements, paid paternity leave, or any other policies that do not allow GameStop to take advantage of employees.
Back in 2022, Cohen through his personal investment firm purchased a 9.8% stake in Bed Bath & Beyond and pushed for changes at that retailer; the company went bankrupt a year later. He also co-founded the online pet goods company Chewy.
DEI stands for Diversity, Equity, and Inclusion, and refers to policies meant to support underrepresented demographics in the workplace. The practice has come under intense fire from President Trump and his new administration, which has sought to eliminate such policies from the federal government and the private sector.
Critics of DEI say that the programs unfairly disadvantage Caucasians in a way that is discriminatory, while supporters of the programs say they are a lawful means of ensuring that unconscious biases do not influence the workplace (people tend to hire others who are similar to themselves). Proponents of the programs also argue that business outcomes are better when an organization is diverse, as it can design products that appeal to more demographics.
In the wake of executive orders from President Trump seeking to reign in DEI, a host of companies from Meta to Google have walked back their policies to placate or curry favor in the new administration and avoid litigation. Whether the policies were ever effective in the first place or just window dressing is up for debate, but the moves to kill them have been divisive internally. Research suggests tech employees tend to be much more liberal than their leaders. Other companies like Apple, Costco, and the NFL have kept their DEI policies in place.
GameStop nearly died during the pandemic, when foot traffic to stores plummeted and more people downloaded or streamed games instead. Individuals stuck at home saw that wealthy investors were betting the company would fail, and a combination of nostalgia for the once-beloved brand and resentment of elites caused individuals to pile into the stock. GameStop was able to issue new shares and generate billions of dollars in cash to keep itself afloat. It tried using the new capital to modernize itself with initiatives like an NFT platform. The company’s stock is down 67% from a high in 2021 but still appears inflated by social media attention.
Ultimately, GameStop has only managed to survive at this point by cutting costs, including by significantly reducing its retail footprint. The stores that remain today are full of collectibles like Funko Pops and are generally not pleasant places to visit. But maybe now that
“woke” is being banned in the U.S., GameStop’s fortunes will turn around.
