Rovio is restructuring its business to refocus on 'primary business areas', leading to as many as 260 redundancies – more than a third of its total workforce.
This is second major cut Rovio has made to its workforce in the past 12 months. The company confirmed the loss of 130 jobs last December, 14 per cent of its headcount at the time.
The restructure appears to be a necessity, following and a 73 per cent drop in profits during 2014. Even the successful launch of Angry Birds 2 – downloaded around 50m times in its first month of release – hasn't proved enough to turn the company's fortunes around, following early over-expansion, something Rovio CEO Pekka Rantala admitted to in the official statement.
“Rovio’s growth and eagerness to explore new business opportunities over the past few years has been exceptional,” he said. “As a result, we did too many things. In our current financial condition we must now put focus on where we are at our best.”
Going forward, the business areas Rovio will be focusing on are games, consumer products and media – most notably the Angry Birds movie, due out next year. In fact, workers on the film are the one part of Rovio's operations confirmed to be exempt from redundancies.
“This is personally a difficult decision,” said Rantala. “However, it is certain that a leaner and more agile Rovio is absolutely necessary to move forward and take the company to new successes in the future.”