GameStop shares tank as company cuts jobs, quarterly revenue falls

GameStop said on Tuesday it had cut an unspecified number of jobs to reduce costs and reported lower fourth-quarter revenue amid rising competition from e-commerce firms and weak consumer spending in an uncertain economy.

Shares of the Grapevine, Texas-based company tumbled 17% in extended trade after the results.

Soft consumer spending has weighed on the gaming market over the past few months, with U.S. videogame publishers Take-Two Interactive Software and Electronic Arts reporting earnings below estimates last month.

GameStop posted revenue of $1.79 billion for the fourth quarter, compared with $2.23 billion in the same quarter a year earlier.