PlaySide Studios (ASX:PLY) is restructuring its operations, mainly within its Work for Hire teams, due to delays in securing expected contracts, leading to excess staff capacity, according to a Wednesday Australian bourse filing.

The company said the development of major original intellectual property projects, including MOUSE: P.I., Game of Thrones strategy game, and Dumb Ways to Die console title, remains unaffected.

There will be no changes to existing work-for-hire contracts, but negotiations for new contracts continue, the company added.

The company will incur a one-time restructuring cost of about AU$1.5 million and expects to save AU$4 million to AU$5 million annually in costs, the filing added.

The restructuring aims to optimize costs and ensure strong cash flow from major intellectual property projects starting in 2026.

The company's shares fell 3% in recent Wednesday trade, earlier hitting an all-time low.