Brave Frontier Developer to lay off 100 employees
Gumi continues to struggle with a local crisis within the company. The Japanese publisher and developer will lay off about 100 people from a total staff of 900 employees, as well as close some browser projects.
Serious cuts are an attempt by the company to at least partially compensate for future losses. At the end of the 2015 fiscal year, which for Gumi will end on April 30, instead of the expected profit of $ 10.6 million, it predicts losses of $ 5 million.
The reasons for such results, the management of Gumi calls the low revenue from the “western” version of Brave Frontier and the lack of expected profits from other titles.
The unsuccessful end of the year for the company coincided with the IPO. There is no direct connection between these two events. However, entering the stock market means that the company must report to its investors, including reporting unsuccessful forecasts. Unsuccessful forecasts are an outflow of investors and a fall in the value of shares. What is the result? A vicious circle of losses – if the company fails to “get out of the peak”.
The company is not only laying off employees – it has already taken a number of other anti-crisis measures. Gimi will review the monetization scheme of its flagship title Brave Frontier and release 18 new games, and Gumi CEO and founder Hironano Kunimitsu will refuse to pay for the next 6 months.
A source: http://www.pocketgamer.biz
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