“Australia’s largest studio” PlaySide announces restructure and job cuts
“This is also a suitable moment to contemplate our responsibilities to employees and shareholders,” states the CEO.
PlaySide Studios is downsizing its workforce by laying off an unspecified number of developers.
As reported by Game Developer, the studio, which refers to itself as “Australia’s largest video game developer,” confirmed the layoffs as part of a restructuring effort in a statement issued to investors.
Earlier this year, the studio reported revenues of $40.9 million (AUD$64.6 million). For FY25, revenue had been projected to fall between $39.3 million-$43.1 million (AUD$62 million-68 million), but this estimate has since been revised down to $31.7 million-$34.2 million (AUD$50 million-54 million).
The studio indicated that the restructuring and job reductions are expected to save the company $2.5 million-$3.1 million (AUD$4 million-5 million), although the restructuring itself will initially incur an additional cost of $954,000 (AUD$1.5 million). It is anticipated that the layoffs will primarily affect its contract work and “non-project specific” teams.
Employees impacted by these changes will likely be offered “outplacement support and counseling services.”
PlaySide Studios engages in the development of both self-published video games and projects undertaken in partnership with studios such as Disney, Pixar, Warner Bros, and Nickelodeon.
“Today, we have made the choice to begin a consultation process across our studios,” stated CEO Benn Skender. “We will provide outplacement support and counseling services to those employees whose positions are terminated as a result of the restructuring, and our thoughts are with all affected staff during what is a challenging and heartbreaking day for everyone at PlaySide.”
“Although a prolonged period without new contract agreements has triggered this situation, it is also a timely opportunity to reflect on our commitment to our employees and shareholders to ensure we work towards building greater resilience into the company’s business model. We will keep seeking opportunities to transform successful original IP launches into a more robust balance sheet and an enhanced business.”
In the first quarter of 2025 alone, 1,200 developers have lost their jobs, with layoffs and closures at Freejam, Splash Damage, Piranha Games, Jar of Sparks, Ubisoft, ProbablyMonsters, Iron Galaxy, Sumo Group, Liquid Sword, NetEase Games, Toast Interactive, Night School Studio, Striking Distance, as well as developers behind the Until Dawn remake, Ballistic Moon, and more recently, Eidos Montréal.