Playstudios to Cut 30% of Workforce: 200+ Layoffs Ahead

Playstudios, a game studio that runs online and mobile social games, is planning to reduce its workforce by about 30%, which will impact over 200 employees.

This cutback is part of a reorganization plan aimed at saving up to $30M each year.

Playstudios expects to spend between $14 million and $16 million, mostly for employee transition and severance costs. The company anticipates most of these layoffs will be completed by the end of this quarter.

At the end of 2023, Playstudios reported having 697 full-time and 13 part-time employees across eight countries.

After this announcement, Playstudios’ stock dropped by 4.3% to $1.32 in after-hours trading.

This reorganization news follows a disappointing third quarter, where Playstudios reported a loss of $3.1 million (or 2 cents per share), compared to a profit of $3.8 million (or 3 cents per share) during the same period last year.

Revenue also dropped by 6.1% to $71.2 million, although it was still slightly above analysts’ expectations of $68.6 million.