Ten Square Games to cut jobs as inflation bites (updated)
29/03/2023 12:04
(Recasts, adds quotes, additional information)
GDANSK, March 29 (Reuters) - Polish mobile games maker
Ten Square Games TENP.WA 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 HUGP.WA 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)
((Mateusz.Rabiega@thomsonreuters.com; +48 58 769 67 57;))