PlaySide, described as "Australia's largest studio," has announced a restructure that includes job cuts

PlaySide Studios has decided to cut an undisclosed number of developer roles.

According to a report by Game Developer, the business, which labels itself as Australia's largest game development firm, verified to investors that these job reductions are part of its organizational overhaul.

Previously, the company earned $40.9 million (AUD$64.6 million). Their projected revenue for FY25 was initially set between $39.3 million-$43.1 million (AUD$62-68 million), but this has been adjusted to $31.7 million-$34.2 million (AUD$50-54 million).

PlaySide Studios has stated that this restructuring and the associated layoffs are expected to reduce costs by $2.5 million-$3.1 million (AUD$4-$5 million), although there will be an initial expense of $954,000 (AUD$1.5 million) for the reorganization. The workforce impacted mainly includes those engaged in work-for-hire and in "non-project specific" roles.

Support, including outplacement services and counseling, will be provided to those affected.

The studio develops both standalone games and projects for major partners like Disney, Pixar, Warner Bros, and Nickelodeon.

CEO Benn Skender commented, “Today we’ve initiated a consultation process across our studios. We will provide outplacement support and counseling services to employees whose jobs are eliminated due to this restructure. Our thoughts are with the staff affected during this challenging period."

Addressing the lack of new contract signings and its impact on operations, Skender emphasized the necessity to maintain responsibility towards both employees and shareholders, aiming to reinforce the company's financial health. The focus will remain on leveraging successful original IPs for stronger financial outcomes.

In just the first quarter of 2025, the gaming industry has witnessed 1,200 job losses. Companies like Freejam, Splash Damage, Piranha Games, Jar of Sparks, Ubisoft, ProbablyMonsters, and others including Iron Galaxy, Sumo Group, Liquid Sword, NetEase Games, Toast Interactive, Night School Studio, Striking Distance, Ballistic Moon, and Eidos Montréal have also experienced significant reductions.