PlaySide, the largest studio in Australia, announces a restructuring plan that includes job reductions

Australia-based PlaySide Studios announced a reduction in its workforce, impacting an unknown number of developers as part of a companywide restructuring effort.

Noted by Game Developer, PlaySide, which dubs itself the largest video game creator in Australia, relayed the news through a statement aimed at investors.

The company achieved a revenue of $40.9 million (AUD$64.6 million) earlier this year. Initially, projections for fiscal year 2025 placed revenue at $39.3-$43.1 million (AUD$62 million-$68 million), but these estimates have now been lowered to $31.7-$34.2 million (AUD$50-$54 million).

PlaySide reported that the organizational changes and resulting layoffs are forecast to save the business $2.5-$3.1 million (AUD$4-$5 million), though the restructuring will incur an upfront cost of $954,000 (AUD$1.5 million). The layoffs will likely affect staff involved in work-for-hire roles and those not tied to specific projects.

Employees losing jobs will have access to outplacement support and counseling services from the company.

The studio's diverse portfolio includes self-published titles and cooperative projects with industry giants like Disney, Pixar, Warner Bros, and Nickelodeon.

CEO Benn Skender stated, “We are initiating a consultation process across our studios. We prioritize offering support and counseling to those impacted by our restructuring. Our thoughts are with the staff affected on this difficult day for everyone at PlaySide.

"A lack of new contracts prompted this step, but it's also an opportunity to reinforce our dedication to employees and shareholders by enhancing the resilience of our operational model. Transforming successful Original IP launches into a stronger financial framework and a more valuable company remains our focus."

The gaming industry witnessed 1200 job losses in the first quarter of 2025, with notable layoffs at companies such as Freejam, Splash Damage, Piranha Games, among others. Recent employment cuts were also noted at firms like Eidos Montréal.