The financial struggles of Swedish studio Starbreeze continue as they announce upcoming layoffs in order to stay afloat. They've announced that come November 2019, Starbreeze layoffs will hit a quarter of their remaining employees in order to establish long-term profitability.
Continuing strugglesIn an announcement posted on their website, Starbreeze has announced their plans in order to "make the organization more efficient and reduce costs." These plans involve laying off a quarter of their 240 employees. The Starbreeze layoffs will hit November this year and are estimated to save the company about three million SEK ($317,000.) Starbreeze CEO Mikael Nermark added:
In the past six months we have made a number of changes to the business following our strategy to focus on the core business. We have divested some operations that we consider non-core and we now have to look inward to make the core business more efficient. To make staff reductions is a tough decision to make, but necessary to enable Starbreeze to develop well long-term.Starbreeze's financial woes began in December last year when Overkill's The Walking Dead sold much less than they expected. As a result, they filed for reconstruction, which is essentially a last-ditch effort to avoid liquidation. In addition, former CEO Bo Anderson left the company and their Stockholm office was raided over allegations of insider trading. Just last month, Starbreeze said their company might not have enough funds to last the next 12 months. They've had to sell off some publishing rights and studios to raise more funds.
Starbreeze told Eurogamer that the layoffs are happening "by the book" according to all Swedish laws and regulations. For more on Starbreeze's situation, Eurogamer also published a comprehensive feature on the company's struggles. It's definitely sad to see Starbreeze facing these problems and tough decisions. However, it's good that the employees have good heads-up on the impending layoffs and the company's difficulties, unlike with Telltale who blindsided employees last year with their closure.