Australian studio Mighty Kingdom is laying off 28 percent of its workforce.
Mighty Kingdom CEO David Yin shared the news in a statement posted on X and claimed the studio needs to pursue a “strategic rightsizing to streamline our operations and prioritize core business to align with our vision of the future.”
The Adelaide-based company currently employs 160 people, according to its website. That means around 45 workers are likely to be impacted by the cuts.
Mighty Kingdom’s history in games
Mighty Kingdom was formed in 2010 and has built game experiences with notable partners including Lego, Disney, Mattel, Sony, Funcom, and Moose Toys. It has also developed its own original projects, collectively releasing more than 50 titles to-date while amassing over 50 million downloads in the process.
A trading updated shared with Australian Securities Exchange (ASX) investors explains Mighty Kingdom has completed an initial operational review and organizational restructure that is expected to result in annualized cost savings of $2.1 million.
The company claimed it has recalibrated to optimize its gaming operations for “profitability” and explained it will continue executing on existing projects with key partners despite the job cuts. It also pledged to “build and scale as new opportunities are secured.”
“These decisions are exceptionally difficult but ones we have been forced to make to ensure the future sustainability of the company. We understand the impact these decisions have on the individuals impacted and we will be looking to support them as best as possible,” said Yin.
“We need to be diligent in making the necessary decisions to deploy our existing capital effectively to grow the company. I want to take the opportunity to thank all staff who have worked through a very difficult period, and I look forward to a more sustainable future.”