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Israeli gaming company Playtika to cut 20% of staff
Playtika, an Israeli gaming company listed on Nasdaq, plans to lay off around 20% of its staff, putting 700 to 800 jobs at risk in December.
The company employs about 3,500 people, with 1,000 based in Israel.
This marks Playtika’s fifth round of layoffs since 2022, after the dismissal of more than 1,000 employees during previous cuts.
The most recent layoffs were in June, when 90 staff were let go, mainly from the teams behind Best Fiends and Redecor.
In Q3, Playtika reported revenues of US$674.6 million and a net profit of US$39 million, with a market valuation of about US$1.5 billion.
Playtika acquired Finnish studio Reworks, developer of Redecor, for US$600 million in 2021, but has faced challenges integrating the team, with all founders departing within two years.
The company declined to comment on the planned layoffs.
🔗 Source: Calcalist
🧠 Food for thought
Implications, context, and why it matters.
Playtika’s fifth layoff round since 2022 signals persistent margin pressure in social casino gaming
- Playtika earned $39 million in Q3 profit, about 5.8% net margin 1.
- Revenue reached $674.6 million while operating income was $98.4 million as higher marketing and admin costs kept margins tight 1.
- Year-to-date operating cash flow was $281.8 million, and total debt was $2.39 billion, including a Term Loan due 2028 1.
- In 2021, Playtika bought Finnish studio Reworks for $600 million. The team made Redecor (a home-design game). Calcalist says integration stumbled, and all founders left within two years 2.
Tech firms can hire social casino and live-ops talent from one large layoff
- About 700 to 800 gaming workers may hit the market at once as a 20% cut lands in December 2.
- The 1,000-person Israel hub holds talent in social casino (casino-style games that use virtual currency) monetization, live operations (live-ops) for running ongoing in-game events, and virtual economy design 2.
- Teams behind Best Fiends and Redecor were cut in June. The broader plan widens the pool across casual roles plus social casino roles, which gives hiring managers at game studios or mobile publishers range in mobile gaming experience 2.
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