Glu Mobile's revenues are falling, 100 people have been laid off

Glu Mobile failed to improve financial performance: the game with the next socialites “did not shoot.” The company fires employees to get out of the minus.

The quarter for Glu Mobile ended on March 31, 2016. During this period, the company’s revenue amounted to $54.5 million (GAAP). This is 11% less than in the previous reporting period.

Glu Mobile did not receive any profit at all. The reporting period for the company ended with a loss of $8.6 million. For comparison, the company completed the same quarter in 2015 with a profit of $1.1 million. During the year, the publisher’s and developer’s revenues fell by 22%.

The fact that the company’s financial results are far from ideal was revealed back in February. Then it became known that several titles “with stars” did not give the desired result. Glu CEO Niccolo de Masi said that the development team was to blame for this, and dismissed some of the employees.

It was assumed that these layoffs, as well as the Kendall & Kylie game, which the company released in February, would rectify the situation.

Box office rating of the game Kendall & Kylie in the American App Store
However, this did not happen.

The project about the sisters of Kim Kardashian (Kim Kardashian) stayed in the hundred highest-grossing American games for a month. Now the game is ranked 167th in the ranking of the most profitable projects. Despite the fact that the project brought in $680,000 in the first five days, and 8.6 million in the quarter (non-GAAP), the financial situation could not be corrected.

Glu Gaming revenue (non-GAAP) for the first quarter of 2016
However, the company’s management is following the same course.

In particular, it continues to reduce staff (the number of dismissed, including those who previously lost their jobs, has reached 100) and hires new employees in those countries where labor costs are cheaper.

De Masi believes that this strategy will bear fruit in the near future: “Our management has made a number of operational improvements this quarter. They will increase the speed of work and reduce operating costs, which will help Glu to become a break-even company again.”

Source: Glu Mobile