Video game producer CI Games (CIG.WA) has announced its intention to reduce its workforce by approximately 10%, as part of a strategic move aimed at preserving the company’s financial stability.
CEO Marek Tyminski revealed this decision on the social media platform X, explaining the necessity of these layoffs to ensure the continued strength and resilience of the business.
This announcement comes on the heels of a challenging period for CI Games, marked by a significant drop in the company’s stock price.
In October, the company’s shares plummeted by as much as 18%.
The catalyst for this decline was a wave of unfavorable reviews for their latest game release, “Lords of the Fallen.”
Despite the initial setbacks, the game managed to achieve a noteworthy milestone within a mere 10 days of its launch, with over one million copies sold.
As the news of the layoffs emerged, CI Games refrained from immediate comments or statements, leaving stakeholders and industry observers speculating about the implications of this workforce reduction.
At the time of the announcement, CI Games’ shares were trading at 1.82 zlotys, enjoying a modest 0.7% increase at 1225 GMT.
CI Games now faces the critical task of managing this transition while striving to regain the confidence of its investors and fans alike.
The decision to downsize by approximately 10% reflects the company’s commitment to long-term sustainability and financial prudence.
By streamlining its operations, CI Games aims to weather the recent challenges and position itself for future success in the competitive video game industry.
This strategic move underscores the relentless nature of the gaming business, where success can be ephemeral, and adaptability is essential for survival.
CI Games’ ability to pivot and adapt to changing market dynamics will be closely monitored in the coming months, as it seeks to rebound from recent setbacks and regain its footing in the industry.