GDANSK (Reuters) – Polish mobile games maker Ten Square Games plans to cut jobs, Chief Financial Officer Magdalena Jurewicz said on Wednesday, citing rising inflation and a difficult environment for the gaming sector in the country.
Shares in the company slid 13.5% on the news, which comes a day after Ten Square Games reported a 63% fall in net profit for last year due to a post-pandemic exodus of players.
“We see that inflation in Poland is rising, but we also see what is happening in our industry, so we have plans on reduction of employment,” said Jurewicz.
Neither she nor Chief Executive Officer Michal Zuzalek gave details at a press conference on how many of the company’s 550 employees would be laid off.
Ten Square’s announcement follows a similar move by Polish competitor Huuuge which said last week it plans to lay off about 10% of its employees.
The planned job cuts will, however, not stop the release of Ten Square’s “Hero Legacy” game produced by its Gamesture unit, which is expected to launch in the coming months, Zuzalek said.
“We have a new game from Gamesture, that will appear in the coming months. The technical launch is already underway (…) we will be testing this game and Gamesture wants to add new games to its portfolio in the coming months,” he added.
The company plans to present an updated growth strategy together with the presentation of its first-quarter results, which are due at the end of May, a spokesperson for the group said.
(Reporting by Mateusz Rabiega and Karolina Komada; Editing by Jan Harvey and Emelia Sithole-Matarise)
