GameStop Kicks Off 2026 with Store Closures as CEO Eyes $35B Windfall

In the first weekend of 2026, many GameStop customers were taken aback when they learned that their local stores would soon be shutting down. While the retailer seems to be struggling, the headlines tell a different story. GameStop’s board recently announced a massive performance-based stock option package for CEO Ryan Cohen, potentially worth up to $35 billion, but there’s a catch: he must significantly boost the company’s market cap and earnings.

For employees facing layoffs, the news was delivered via printouts taped to storefronts, where customers could scan a QR code for a 20% trade-in bonus. This same offer was also communicated through emails to customers. Many shoppers expressed frustration over the closures, noting that they now have to travel 30 minutes to over an hour to reach the nearest GameStop. While some customers learned about the closures at the last minute, others seized the opportunity to grab store displays and posters from their local shops.

According to some employees, the closures were unexpected, with even well-performing stores not spared. Estimates suggest that up to 296 locations either closed this week or are set to close soon, with more closures still being confirmed.

“We are all cattle to the corporate [masters], numbers on a sheet, disposed of at their whim,” one affected worker shared on Reddit.

Employees report receiving closure notifications in waves, indicating that more shutdowns could be on the horizon. Some workers claim they were given only a few days’ notice, and only a select few have the option to transfer to other GameStop locations. Customers visiting stores that remain open might notice a lack of inventory, as shipments to these locations have dwindled this month.

While employees share their frustrations, GameStop’s corporate leadership is focused on growth. CEO Ryan Cohen’s potential $35 billion stock option payout hinges on the company achieving a market cap of $100 billion and cumulative earnings of at least $10 billion—ambitious targets considering GameStop’s current market cap is around $9.52 billion. For Cohen to secure this bonus, the company would need to grow tenfold. His compensation structure is entirely performance-based, with no guaranteed salary or cash bonuses, meaning he only gets paid if the company meets significant market and operational goals.

As Cohen aims for a substantial payday, displaced workers have begun the new year by voicing their disappointment.

“GameStop doesn’t deserve the rotten gum on my shoe, but I’m gonna miss my store,” one employee lamented in a recent Reddit thread. “This location was my childhood GameStop. I actually found a list that I made as a kid where one of my favorite things I wrote was GameStop.”