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Glu restructure could result in over 100 layoffs, loss of two studios

Glu restructure could result in over 100 layoffs, loss of two studios

January 11, 2017 | By Chris Kerr




Kim Kardashian: Hollywood maker Glu Mobile has posted details of a restructuring plan that could result in over 100 layoffs and the shuttering of two studios. 

A new filing uploaded to Seeking Alpha on January 10 states that Glu is "committed" to the plan, intended to streamline the company's game dev operations. 

According to the paperwork, the changes could result in the "elimination of approximately 107 positions, 95 of which are from Glu's Bellevue, Washington and Long Beach, California studios, and 12 of which are from its San Francisco headquarters."

"[It might also result in the] discontinuation of all operations at Glu's Bellevue, Washington studio."

Depending on the performance of Glu's upcoming Car Town Racing beta release, the studio will then decide whether eliminate an additional 33 positions and shut down all operations at its Long Beach, California studio.

The company also outlined plans to move the development of its popular Racing Rivals title from its Long Beach studio over to mobile dev, Carbonated Inc, which is managed by former Zynga and EA Mobile SVP, Travis Boatman. 

Glu says it will provide Carbonated with development funding and a percentage of the profits generated by Real Racing in the hope that its new partner will be able to boost revenues. 

Glu maintains that its restructuring efforts are in line with last year's decision to shut down game studios in Beijing, California, and Washington. The company also noted that it intents to offset the upcoming layoffs by adding new faces to its offices in the San Francisco Bay area and Hyderabad, India. 

As such, Glu expects that its overall headcount and R&D expenses will be at roughly the same level by the end of 2017 as they were before the restructure.



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