Playtika cutting 15 percent of global workforce in pursuit of 'AI and automation'
Mobile publisher Playtika is laying off 15 percent of its workforce and reshaping its operating model around "streamlined teams powered by AI and automation."
The Best Fiends and Dice Dreams developer has over 3,000 employees in 15 offices worldwide, according to its website. It's roster of mobile games currently boasts over 20 million monthly active users.
Playtika CEO and co-founder Robert Antokol said the company must reduce its headcount in order to "invest in the future and remain a leader in a highly competitive mobile games market."
In an email to employees outlining the plan (included in an SEC filing announcing the cuts), Antokol said the business transformation will mark a new chapter for Playtika that will see it swap "headcount-heavy operations" for smaller teams powered by AI.
He claimed that new, leaner structure will allow Playtika to better compensate those who remain with the company and provide clearer career pathways to crate a "winning culture." Antokol said the move will also enable growth.
"Growth games take time to become profitable. By tightening our resources in mature areas now, we provide runway for our growth titles to succeed without jeopardizing our financial health," he continued. "[...] This is not a retreat; it is a reallocation of strength. Our goal remains unchanged: to be the leading independent mobile gaming company in the West."
Playtika expects the restructuring plan to cost around $12 million to $15 million, primarily consisting of severance payments, notice period payments, employee benefits, and other related costs.
"While the Plan is expected to result in operating expense efficiencies, the Company anticipates reinvesting a substantial portion of these expense reductions to advance growth initiatives," it added in an SEC filing. "Accordingly, the impact on overall profitability will depend on timing and scope of these investments."
This isn't the first time Playtika has made significant cuts in recent year. In December 2022, the company laid off 600 workers and pulled multiple titles from its release slate. It also kicked off 2024 by making 300 to 400 people redundant.
In both of instances, Playtika said the cuts were made in pursuit of efficiency.
