Gameloft profits up after 'strategic' cost cutting and layoffs
The company's shuttering spree was the result of an "ambitious cost reduction program", which, according to CEO Michel Guillemot, "affected almost 20 percent of the company's staff, including 850 positions closed."
Writing in Gameloft's 2015 annual report, however, Guillemot says the firm's strategic cost cutting has paid off.
By the end of the last fiscal year ended December 31, Gameloft's sales were up to €256.2 million ($287.5 million); a year-over-year increase of 13 percent.
Gross profit also received a welcome boost, rising to €217.5 million ($244.1 million) from €187.2 million ($210.1 million).
Notably, Gameloft's own franchises accounted for nearly two thirds of sales in 2015, while the company also showed its strength on the global market, with Europe, the Middle East, and Africa (EMEA) accounting for 30 percent of annual sales.
"Our 2015 strategic plan, which translated to a global reorganization of teams and significant cost cutting measures, has started to bear fruit," wrote Guillemot.
"The cost of this transformation, which affected almost 20 per cent of the company's staff, including 850 positions closed, has weighed on the net income of the fiscal year but has allowed us to restore Gameloft's current operating profitability as early as the second half of 2015."