Rovio, maker of hit mobile game Angry Birds, is to lay off 130 staff from its headquarters in Finland.
The news came earlier today via a post on the company’s website, in which CEO Mikael Hed stated that the company needs to “simplify” their organization.
The full text of the letter can be read below.
“We work in businesses that are so fast moving that the only constant is change. At Rovio we have always been innovative and forward-looking, and to succeed we need to be the best at adapting to change.
We are an entrepreneurial company and have been exploring multiple areas. We have been building our team on assumptions of faster growth than have materialized. As a result, we announced today that we plan to simplify our organization around our three key businesses with the highest growth potential: games, media, and consumer products. Unfortunately, we also need to consider possible employee reductions of a maximum of 130 people in Finland (approximately 16% of workforce).
It is never easy to consider changes like this, but it is better to do them sooner rather than later, when we are in a good place to reignite growth.
At Rovio we live to delight our fans. This year we have more launches and news than ever. As we consider these painful measures, we keep our eye on always delighting our fans with products they love.
Despite having risen quickly to become one of the pre-emininent forces in the mobile gaming sector, more recently the company has found itself beset by troubles. An Angry Birds movie is due to hit cinemas sometime in 2016, while branching out into an animated TV series, toys and branded clothing have all supplemented Rovio’s income. In addition, the company expanded last year into publishing under its Rovio Stars imprint.
But despite this rapid expansion – or, perhaps, because of it – finances have been on the slide. Rovio reported that its net profits in 2013 had more than halved compared to the previous financial year, leading many to question whether the mobile gaming bubble was about to burst in a similar fashion to the dotcom market crash of the early nineties.
Our sympathies go out to those affected, and we hope they find new positions in the industry soon.