Playtika Bows Down To Economic Headwinds, Tech Meltdown; Slashes Workforce And Gaming Titles

  • Israeli tech company Playtika Holding Corp PLTK reportedly plans to downsize 15% of its staff. 
  • The redundancies will impact 615 people from its total workforce of 4,100 across the company's global footprint in Europe, Israel, and the U.S., TechCrunch reports.
  • An internal memo noted that three titles, including 'MergeStories,' 'DiceLife,' and 'Ghost Detective' will sunset to rationalize costs.
  • Playtika will offer alternative roles to a proportion of employees impacted by the cuts. 
  • CEO Robert Antokol told TechCrunch, "We believe the structure announced today further leverages our core strengths of delivering superior in-game experiences and scaling mobile games to global franchises in continuation of growth. Saying goodbye to talented colleagues and friends is difficult."
  • The report noted Playtika was one of the waves of businesses with its popular online gambling and gaming titles that went public last year, riding on the back of a massive surge in usage among pandemic consumers.
  • However, the lack of stability in the gaming business, coupled with general depression in tech stocks, wreaked havoc on the company.
  • Shareholder, Joffre Capital, pulled out of a deal to take a majority stake in the company after governance disputes.
  • Playtika had already eliminated 250 workers in May.
  • The report further added that, among other gaming companies, Electronic Arts Inc EA reportedly sought a buyer; Unity Software Inc U laid off around 200 people, and some believe this is just the start.
  • Price Action: PLTK shares closed higher by 2.99% at $8.61 on Friday.
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