Australian developer PlaySide Studios has announced that it will be making job cuts in the near future.
In a note to investors, the company revealed that it would be making an undisclosed number of layoffs as part of an "operational restructure". This is primarily impacting PlaySide's work-for-hire and "non-project specific" staff. The studio made this decision due to it not having a huge amount of luck in winning new work-for-hire projects.
"Whilst the Company remains confident of winning new contract work, the timing remains uncertain," PlaySide management wrote.
Existing projects, such as Mouse: PI for Hire, will not be impacted by this decision. PlaySide reckons it will save between AUD 4 million and AUD 5 million ($2.5 million-to-$3.2 million) per year, though comes with a restructuring cost of AUD 1.5 million ($950,000).
“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," CEO Been Skender wrote.
"While a prolonged period with no new contract signings has been the catalyst, 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. We will continue to look for ways to convert successful Original IP launches into a stronger balance sheet and a more valuable business.”
