Team17 to lay off dozens of people, including CEO and most of its QA department, as part of major restructuring

Team17 is now going through another wave of layoffs, the second this year. The Worms maker has initiated a restructuring process that will result in dozens of people losing their jobs.

As reported by Eurogamer, around 50 Team17 employees are at risk of being laid off. As of June 30, the company employed 438 people (via its latest H1 report), so the cuts could affect about 11% of the total workforce.

Team17 announced the layoffs today during an emergency town hall meeting. The company has now started a “major restructuring process,” with consultation on it expected to end in November.

According to sources familiar with the matter, the vast majority of Team17’s QA department will be let go. The layoffs will also affect CEO Michael Pattison, who has been running the company’s publishing business — Team17 Digital — since October 2021 and has previously worked at PlayStation, Capcom, and THQ.

Team17 eventually confirmed the job cuts, telling IGN that it has “amicably parted ways” with Pattison. It also added that its subsidiaries, Astragon and Storytoys, won’t be affected by the restructuring plans, meaning they will only affect Team17 Digital.

Earlier this year, the UK publisher conducted a round of layoffs affecting people in art and design teams. It was reported that this move was part of the company’s plans to “focus further towards its publishing side, and external development of its own IP.”

In March, Debbie Bestwick announced her decision to step down as CEO of Team17 Group. She has been with the company since its inception in 1990 and has served as its chief executive officer since 2010. Steve Bell, former CEO of global marketing agency Iris, will replace Bestwick on January 1, 2024.

For the first half of 2023 ended June 30, Team17 reported a revenue of £69.7 million (up 31% year-over-year), with its gross profit up 18% YoY to £30.2 million. Its publishing portfolio in the period included games like King of the Castle, Dredge, Trepang2, and Killer Frequency.

However, the company’s market value has been declining for a while now. Since the beginning of 2023, its stock has fallen over 37% to 277 pence per share.