PlaySide Studios, an Australian developer and publisher, is experiencing a mix of highs and lows this year as the company initiates a restructuring process, primarily affecting its Work for Hire teams and general workforce not assigned to specific projects. In 2024, PlaySide reported a workforce of 360 employees, though the exact number of layoffs has not been disclosed at this time.
The studio has reassured that these layoffs will not hinder ongoing projects, which include VR titles like the forthcoming Sid Meier’s Civilization VII VR as well as traditional experiences such as MOUSE: P.I. For Hire. According to their communication to investors, this assurance also extends to their anticipated Game of Thrones strategy game alongside the console version of Dumb Ways To Die.
This news follows the announcement made a few months earlier when PlaySide disclosed an impressive record annual revenue of $64.6 million AUD (equivalent to approximately $40.9 million USD). Benn Skender, the newly appointed CEO of PlaySide, stated that the company would provide outplacement assistance and counseling services for the employees affected by the layoffs.
As mentioned in the communication, this restructuring decision is “a response to previously announced delays in securing Work for Hire contracts.” They further noted ongoing negotiations for “several” new Work for Hire contracts. The communication elaborated:
“However, management is intent on optimizing the Company’s cost base in order to ensure that successful delivery of major Original IP projects from FY26 onward results in high levels of cash flow generation that can support sustainable growth in the business.” – PlaySide
In a statement at the conclusion of the communication, Skender expressed the company’s “obligation to employees and shareholders” to “continue to look for ways to convert successful Original IP launches into a stronger balance sheet and a more valuable business.” The anticipated layoffs are projected to save the company approximately $4-5 million annually, despite an initial restructuring cost of $1.5 million. Furthermore, PlaySide has adjusted its revenue projections for 2025 to a range of $50-54 million, down from the 2024 peak of $64.6 million.