Ludia, a subsidiary of Jam City, undergoes layoffs as former employees seek new roles.

Jam City recently acquired Ludia for $165 million, but controversy arose in 2022 when sudden layoffs affected the subsidiary. Now, it appears that more redundancies may be happening, as posts on LinkedIn revealed the breaking news.

The extent of these layoffs is still unclear. PocketGamer.biz has reached out to Ludia and those affected to gather more information. According to an anonymous source, the total number of redundancies is estimated to be 45, including multiple directors and a VP.

Fortunately, the current situation may be relatively limited compared to the 17% reduction in staff that occurred earlier in 2022.

Cuts Across the Board

If these cuts turn out to be significant, it would follow a disturbing trend of developers and studios making widespread layoffs. Even veteran studios like Kiloo, who contributed to the development of Sybo’s Subway Surfers, have closed without much notice.

After experiencing growth due to the “captive audience” during the pandemic, many companies are now reevaluating their positions as growth returns to a slower but steadier pace. Some, like Playtika, have decided to halt the development of new games and focus on restructuring and their existing catalog.

Most recently, Jam City appointed Josh Yguado as the new CEO. While he expressed optimism about his role earlier this year, this latest news will likely be the first test of his leadership.