By Connor Hart
Playstudios will cut about 30% of its global workforce, or more than 200 employees, in a reorganization plan that aims to result in up to $30 million of annual cost savings.
As a result of its plan, the Las Vegas games developer will incur between $14 million and $16 million in charges, primarily relating to employee transition costs and severance payments, it said Monday. The company expects the job cuts to be substantially complete by the end of the fourth quarter.
At the end of 2023, the company had 697 full-time and 13 part-time employees across eight countries, according to an annual filing with the Securities and Exchange Commission.
Shares fell 4.3%, to $1.32, in after-hours trading.
News of Playstudios' reorganization plan came as the company swung to a loss and reported lower revenue in the third quarter.
The company posted a loss of $3.1 million, or 2 cents a share, compared with a profit of $3.8 million, or 3 cents a share, in last year's quarter.
Revenue fell 6.1% to $71.2 million but came in ahead of the $68.6 million that analysts surveyed by FactSet were expecting.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 04, 2024 17:37 ET (22:37 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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