Jam City is reportedly laying off hundreds of employees today after mass layoffs affected as much as 17% of its workforce.
According to from VentureBeat, 150 to 200 employees were fired from the Jam City office. However, Game Developer Network Noting that most of the layoffs hit Ludia, the Montreal mobile developer behind DC Heroes & Villains and Jurassic World Alive. Jam City’s San Diego office was also reportedly more severely affected. Jam City has offices in Los Angeles, San Francisco, Las Vegas, Cedar Falls, Bogota, Buenos Aires and Toronto.
“Given the challenging global economy and its impact on the gaming industry, Jam City has made the difficult decision to reduce the size of our team by approximately 17%,” a spokesperson told VentureBeat. “We have made several strategic acquisitions in recent years, and this move represents an appropriate adjustment in the size of our workforce to address the layoffs associated with these transactions.”
Jam City acquired Ludia last September for $165 million. As a result of these layoffs, about one-third of Ludia’s workforce has been made redundant.
“While Jam City remains profitable, we believe that in the current operating environment, this is a necessary move to enhance our financial flexibility and operational efficiency, and to better position Jam City for long-term growth,” added the Jam City representative road. “This also follows a broader reorganization we recently completed to realign our development teams in genre departments that focus on subject matter expertise to optimize performance. We thank those who have left us for the many contributions and provide severance and benefits to help with the transition.”
Jam City recently attempted to become a public company through a merger with DPCM Capital, similar to how FaZe Clan went public. However, the deal fell through last year. Jam City has since secured a $350 million investment to further its growth strategy.
Jam City isn’t the only mobile developer experiencing setbacks. NetEase recently laid off 100 employees after canceling its World of Warcraft mobile MMO program with Blizzard.
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