Game says it will furlough its entire workforce until the end of April with regular pay, but cannot guarantee jobs after that date.
The video game retailer emailed its staff earlier this week informing them they will receive regular pay from March 26 until April 30, following the closure of all of its 247 stores on March 24, according to Eurogamer.
After this date the email warns staff: “We and you should plan for the next few months getting harder for our business.”
While Frasers Group, which now owns Game, is expected to utilise the government’s Coronavirus Job Retention Scheme after this date and provide staff with 80 per cent of their wages, it said it could not rule out taking “drastic steps”.
While the situation is still uncertain, Frasers Group said it could be forced to ask employees to reduce salaries or make redundancies amid “difficult circumstances”.
“Every day our lives and economy see huge changes,” the email read.
“COVID-19 touches every aspect of what we do. All of us are affected, as individuals, businesses and society at large. Our economy is fighting for survival. Retail remains one of the hardest hit sectors. We will continue to do all that we can to ensure that our business remains as strong as possible for the benefit of all of us.
“We must make difficult decisions to ensure that as we move out of the current situation our business is in the best place possible. The work that was once there has fallen away; our business, as with so many others, is smaller. We must respond to these circumstances, including the reduction in work.
This comes after Mike Ashley, the owner of Frasers Group, was forced to issue a public apology last week after attempting to keep Sports Direct stores open despite government orders.
Today it was announced that Frasers Group would cut executive pay to £40,000, while warehouse staff across his retail empire would receive the same regular pay as Game staff until April 30.