G5 Entertainment announced plans to lay off 180 employees
This accounts for almost a quarter of the company's workforce.
Sherlock
G5 shared this news in its latest quarterly report. It explained that the layoffs will be part of a cost reduction program aimed at helping the company get back on track. The company anticipates that this move will save approximately $6.2 million annually.
"We have made the difficult but necessary decision to reduce our workforce by 180 employees to align our headcount with the size of our business and maintain our margins," stated G5's CEO Vlad Suglobov.
However, Suglobov acknowledged that these measures might not be sufficient. According to him, G5's revenue is likely to continue declining in the near future, while the costs of acquiring players are expected to increase. If this scenario materializes, further layoffs might occur.
Whether G5 will cut more employees in the future depends on the success of the hidden object game Sherlock, the Jewels series, and two yet-to-be-released games.