In a Reddit post last week, a day trader who helped push GameStop Corp. shares to record highs said he stopped by his local store to hand out $100 bills to employees as a thank-you. He encouraged other traders who\u2019d seen a windfall to do the same.<\/p>\n
\u201cThey are a part of the reason we are up so much,\u201d the trader posted, attracting 442 comments.<\/p>\n
But other than some handed-out cash, GameStop employees won\u2019t be sharing in the riches.<\/p>\n
Reddit day traders have enjoyed massive gains in GameStop\u2019s stock, which reached a closing high of $347.51 on Wednesday. Though they dipped in after-hours trading, the shares remain far above where they started the year. The retailer\u2019s employees, meanwhile, have suffered from shuttered stores, wages they see as subpar and the struggles of working during the Covid-19 pandemic.<\/p>\n
More than 1,000 stores are slated to go dark during GameStop\u2019s fiscal year ending in January. And the company plans to close more stores in the coming year.<\/p>\n
GameStop staffers who keep their jobs typically make around $11 an hour, according to Salary.com. That\u2019s lower than at Walmart. Retail sales positions on GameStop\u2019s site ask for a high-school diploma and six months of regular work experience.<\/p>\n
Against that backdrop, the stock runup — goosed by the Reddit subgroup r\/WallStreetBets — has left a bad taste in the mouth of some.<\/p>\n
\u201cHonestly it just sucks that people care more about the stock going up than the fact GameStop squeezes everything it can out of its employees,\u201d according to a Redditor who goes by Angel. He says he worked at a GameStop in Texas for 10 years.<\/p>\n
Many stores require employees \u201cto do the job of two to three people in a day,\u201d Angel, who asked not to give his real name, said in an email. \u201cMost don\u2019t get breaks, and there\u2019s huge scrutiny to meet the increasing performance goals. And if you don\u2019t hit them it\u2019s because \u2018you aren\u2019t trying hard enough\u2019 and if you do it\u2019s because \u2018the goals are too low.\u2019\u201d<\/p>\n
GameStop, based in the Dallas suburb of Grapevine, declined to comment on its employee policies.<\/p>\n
Another Reddit user, Azrane, who also identified as a GameStop employee, noted<\/span> that the stock performance has no bearing on employees beyond the executive suite.<\/p>\n Azrane said it was \u201ctone-deaf and infuriating\u201d to see people from r\/WallStreetBets \u201ccelebrate how much money they have made on the stock when this company will never pay its workers a fair living wage that leaves us happy, comfortable, and not having to live with the threat of getting sick and missing work looming over our heads.\u201d<\/p>\n The Reddit group dedicated to GameStop is filled with discussions by users identifying themselves as employees. There, the stock drama isn\u2019t front and center. Complaints are more likely to be about being short-staffed and dealing with clueless customers.<\/p>\n But the stock rally could ultimately benefit employees by improving the company\u2019s fortunes, said David Cole, head of research firm DFC Intelligence.<\/p>\n \u201cA lot of the runup is from smaller investors who are personal fans of the company,\u201d he said. \u201cIt shows that there is a lot of love out there for GameStop. Even if the bubble bursts, the eventual reality is likely to be better than before when GameStop was written off for dead and investors were basically taking death bets.\u201d<\/p>\n The rally — if it lasts — could help GameStop raise more money for a turnaround strategy, either by selling stock at higher prices or refinancing. And that might save jobs.<\/p>\n \u201cGameStop is in a unique position now where they do have choices,\u201d said John Patrick Lee, product manager at VanEck, an investment firm that doesn\u2019t own shares in the retailer. \u201cWith this new market value, they have an opportunity now to move toward the future of the video-game market. Do they integrate with an esports team? Do they take their physical stores and convert them into a place where people play games? They have options where they used to not have options.\u201d<\/p>\n GameStop is slated to provide a strategy update in January. In the last few weeks, it gained three board members, including activist investor Ryan Cohen, the former head of pet-supply site Chewy.com.<\/p>\n Cohen has bold ambitions for the chain, such as adding more merchandise and taking on Amazon.com Inc.<\/p>\n But for employees, the most pressing issue may be when GameStop\u2019s resurgence will reach them.<\/p>\n