Layoffs are set to hit South Australian developer Mighty Kingdom, as it moves to implement a sweeping new staff strategy aimed at reducing costs.
As reported by Leah Williams at GamesHub yesterday, Mighty Kingdom announced via the ASX that it would be implementing a three-step plan to reduce its overall costs “as revenue continues to increase.” This includes a “reduction of FTE (‘full-time equivalent’) within the developer and administration teams,” a “focus on tighter cost controls around all areas of the business,” and a “reduction of other fixed costs” across multiple departments.
As Leah notes, it seems that Mighty Kingdom is planning strategic layoffs in an effort to build a “sustainable business model” in hopes of breaking even by Q3 in FY2023. According to a press release issued the day of the announcement, Mighty Kingdom feels its FTE reduction can be accomplished with “limited impact” on the company. Many staff, however, are expected to be let go.
“After an extensive internal review, we are actioning cost-saving initiatives that we see as a turning point in the Company’s advance towards cashflow break–even and future profitability. This process, in conjunction with an anticipated strong revenue lift by the end of this calendar year, will ensure our people are placed in the best possible positions and are able to work as efficiently as possible to deliver shareholder returns,” reads a statement from Mighty Kingdom Managing Director and CEO Philip Mayes in the press release.
“We look forward to the positive effect these changes will have as we leverage our world class creative team and reputation to unlock long–term value for our shareholders.“
The new strategy comes only a month after a damning CNET report indicated the studio was in financial strife following the underwhelming response to Conan Chop Chop.
A grim day in the kingdom, to say the least. Our thoughts are with all the talented Mighty Kingdom staff whose jobs may now hang in the balance.
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