In a bid to save around US$5 million a year, peripherals manufacturer Mad Catz has announced it is making more than a third of its staff redundant.
Gamasutra has reported that, in the wake of many of its top executives handing in their resignation, 37 percent of its employees will be let go under a restructuring plan.
CEO and President Darren Richardson, chairman Thomas Brown, senior VP of business affairs, corporate secretary and general counsel Whitney Peterson all left the company 24 hours before Mad Catz's third quarter financials came out.
The figures were telling: while net sales for the third quarter of the 2016 financial year rose by 114% to US$65 million, operating income rose by 28% and the company's gross margins for the quarter plunged to 17.5% from 26.9% from the same time last year.
The company's earnings before interest, taxation, depreciation and amortisation for the first three quarters of fiscal 2016 (ending April) was US$1.276 million, 41% down from the same period the previous fiscal year.
Karen McGinnis, the new CEO and president of Mad Catz, said in the company's results that quarterly net sales "were the second highest in the company's history reflecting strong Rock Band 4 sales". That helped offset a downturn in audio and PC peripherals, as well as a lower than expected sell-through of Rock Band 4. Increased promotions for Rock Band also resulted in lower margins for Mad Catz.
"Looking ahead, we are confident in our ability to further monetize our diverse range of products and are focused on updating and improving many of our product offerings to better leverage the opportunities we see ahead," she added.