PlaySide, identified as Australia's largest studio, announces a restructuring plan that includes job cuts

PlaySide Studios has announced a round of layoffs, affecting an unspecified number of developers as part of a company-wide reorganization.

According to a report by Game Developer, the firm, known for being a prominent video game developer in Australia, shared this information with its investors.

Earlier, PlaySide Studios had reported a revenue amounting to $40.9 million (AUD$64.6 million) for the beginning of the year. However, projections for the fiscal year 2025 were initially estimated between $39.3 million-$43.1 million (AUD$62-68 million) but have now been reduced to $31.7 million-$34.2 million (AUD$50-54 million).

The adjustments, which involve both restructuring and layoffs, are anticipated to save $2.5 million-$3.1 million (AUD$4-$5 million). Nonetheless, the restructuring comes with an upfront cost of $954,000 (AUD$1.5 million). The impact will mostly be on its contract-based and project-independent workforce.

PlaySide has committed to offering those affected "outplacement support and counseling services."

The studio engages in development partners with entities like Disney, Pixar, Warner Bros., and Nickelodeon in addition to its original titles.

CEO Benn Skender acknowledged, "Today, we've initiated a consultation process across our studios. We plan to provide outplacement and counseling services to those affected by the restructure. Our priority remains with our staff during this challenging period for PlaySide."

He further added that the lack of new contracts has prompted this decision. "This is a time to evaluate our commitments to our employees and shareholders and to build a robust business model. We aspire to enhance our financial standing by converting successful original IP ventures into value," Skender stated.

In the first quarter of 2025, the gaming industry has witnessed approximately 1,200 job losses, including companies like Freejam, Splash Damage, and several others facing similar challenges. Among them are Striking Distance, and Eidos Montréal.