Restructuring at Playtika: Closing 3 online game app projects and cutting staff by 15%
In order to stay on the market, Israeli developer Playtika was forced to lay off about 15% of its staff and give up three of its titles. The layoffs affected offices in Israel, the US and Europe. The sudden staff reduction affected the company's share price. However, according to experts, the situation is not critical.
Despite the fact that Playtika reduced the staff and restructured, do not forget that this developer gambling games has already reached considerable heights. Some of the company's projects have won awards at trade shows, while others have been downloaded more than a hundred million times. Such a popularity figure indicates that Playtika doesn't intend to leave the gambling entertainment market and is only trying to optimize its costs as much as possible.
According to the company's executives, the secret of success in the market lies in their fanaticism and passion for gambling. The developers at Playtika don't just create another game for money, they themselves are fans of their product and therefore strive to bring it to perfection. In this way, Playtika manages to outmaneuver its competitors and offer players a completely new experience.
Downsizing and restructuring: How they relate
Although more than 600 people have been laid off from the Playtika staff, the official reason for the layoffs has never been released by the company. Playtika's CEO's letter suggests that Playtika is constantly assessing its risks and prospects in order to achieve its goals.
Taking into consideration the recent layoffs it seems the company's crisis management decided it would be better to get rid of unnecessary expenses and accumulate the saved money for the development of more perspective projects.
At the same time Playtika's shares have been gradually declining, which raises additional questions from investors. So maybe the reason for firing 15% of the company's staff is that Playtika is on the verge of bankruptcy.
It should be taken into account that restructuring and downsizing is not something special for the gambling market. Here, as in any other industry, companies sooner or later have to reduce their appetites. However, this does not mean that they drop out of the game.
So, if you are a fan of Playtika projects - do not despair. We are sure that very soon the developer will declare itself on the gambling market and offer new entertainment to the fans.
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