Australian game developer PlaySide Studios has announced a forthcoming reduction in its workforce as part of an operational restructuring initiative. In a communication directed at investors, the studio disclosed that it would be implementing an undisclosed number of layoffs, primarily affecting its work-for-hire and non-project specific personnel. This decision stems from the company’s challenges in securing new work-for-hire projects.
Strategic Restructuring and Financial Implications
Management at PlaySide expressed confidence in their ability to secure new contracts, though they acknowledged that the timing remains uncertain. The restructuring is expected to yield annual savings between AUD 4 million and AUD 5 million (approximately .5 million to .2 million), albeit accompanied by a one-time restructuring cost of AUD 1.5 million (around 0,000).
Importantly, ongoing projects, including the title Mouse: PI for Hire, will not be affected by these changes. CEO Been Skender emphasized the company’s commitment to supporting affected employees, stating, “Today we’ve made the decision to commence a consultation process across our studios. We will be offering outplacement support and counselling services to personnel whose employment ends as a result of the restructure, and our thoughts are with affected staff on what is a difficult and sad day for all PlaySiders.”
Skender further elaborated that while the lack of new contract signings has prompted this restructuring, it also presents an opportunity to reinforce the company’s resilience. “It is also an appropriate time to reflect on our obligation to employees and shareholders to ensure that we strive to build resilience into the Company’s business model,” he noted. The studio remains focused on leveraging successful original intellectual property launches to enhance its financial stability and overall business value.
