UK online games retailer Gameplay is to axe 275 jobs across Europe and shut all eight of its UK stores as part of a major shake-up.
Under the restructuring plans the company will be divided into two main units: a technology division and a boxed games division.
The technology division is made up of the company's interactive TV series, and the multi-player online gaming and digital distribution operations. The boxed games division comprises all operations that involve the sale of computer games in boxed form. PC games development will no longer be a core activity, the company said.
Gameplay, which reported a full-year operating loss of £23m in October, will reduce the number of operational sites across Europe from 16 to 10 and close eight retail outlets in the UK. It said it hopes to slash annual spending by £12.5m.
"This is a broad and decisive restructuring of the business with the single aim of bringing forward the point at which the group is profitable," said chairman Mark Strachan in a statement.
According to the company, while its high street @Jakarta stores in the UK provided significant revenues, they were too expensive to operate. The shops were acquired from Dixons in August and included sites at Bluewater shopping centre in Kent and Lakeside in Essex.
Gameplay chief executive Mark Bernstein said in August that a high street presence would help the company's relationship with games publishers and developers.
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