Techcrunch reports that Israeli tech company Playtika is making another round of layoffs. The company confirmed today that it is laying off 15% of its staff.
Playtika has 4,100 employees. The layoffs will affect 615 people who work in Europe, Israel and the US.
In a memo sent to employees, which TechCrunch obtained, it is noted that the studio is ceasing support for three games as the company seeks to streamline costs. Presumably, these projects will be MergeStories, DiceLife and Ghost Detective.
The company will offer alternative positions to some employees who will be affected by the cuts.
Playtika’s success is based on our flexibility, efficiency, creativity and obsession with providing players with the most fun forms of mobile entertainment. The company continually evaluates strategic plans in light of many factors, including the economic situation, and believes the structure announced today further leverages the studio’s strengths of providing superior in-game experiences and scaling mobile games to global franchises in continued growth.Robert Antokol, CEO of Playtika
Rumors of layoffs have been circulating in the Israeli press since last week, but the media reported 500 employees were laid off. In reality, the number turned out to be higher.
Playtika, listed on the Nasdaq exchange, is having a particularly tough year as hard times for the tech sector.
The company went public last year, relying on a surge in popularity among pandemic consumers who sit at home and observe self-isolation.
Side note: Playtika’s success in casual games.
In its June 2021 IPO, the company debuted with a price per share of $27 and a valuation of $11 billion to raise $1.9 billion before rising to a market value of $14 billion on the first day of trading. A few months after, the company bought Finnish home-decor game maker Reworks for $400 million.
The company missed earnings expectations in the most recent quarter. Although third-quarter revenue rose to $647.8 million from $635.9 million in the same quarter last year, net income fell to $68.2 million from $80.5 million in the third quarter of 2021.
Last week, shareholder Joffre Capital pulled out of a deal to acquire a majority stake in the company after management disputes.