Starbreeze cutting costs by laying off a quarter of staff

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Starbreeze cutting costs

Struggling Swedish developer/publisher Starbreeze is laying off a quarter of its staff to cut costs as it fights to survive.

In a statement, the company said: “Starbreeze has decided to make organizational changes in order to make the organization more efficient and reduce costs. As a consequence, the number of employees will be reduced by approx 60. The changes are expected to be fully implemented in November.”

The company that brought us games franchises including Payday, The Darkness and Overkill’s The Walking Dead said that the staff cuts will save approximately £250,000 per month. Starbreeze has struggled financially for some time – in December 2018, it entered “reconstruction”, a period granted to Swedish companies looking to stave off bankruptcy. And it recently applied for an extension, taking the reconstruction period up to September 2019.

In the statement, Starbreeze CEO Mikael Nermark said: “In the past six months we have made a number of changes to the business following our strategy to focus on the core business. We have divested some operations that we consider non-core and we now have to look inward to make the core business more efficient. To make staff reductions is a tough decision to make, but necessary to enable Starbreeze to develop well long-term.”

Among those “non-core” divestments, Starbreeze sold the publishing rights for System Shock 3 to Otherside Entertainment. The company added that the forthcoming staff cuts will only affect its Stockholm office.

For further Starbreeze-related news, visit the company’s website.