Glu guts staff, shutters offices
Coming off a less-than-ideal third quarter, mobile gaming firm Glu Mobile (NASDAQ:GLUU) is slashing its staff and closing offices in order to restructure its resources and cut costs.
Glu will trim its Kirkland, Wash., office by 25 percent and its San Francisco office by 5 percent. The company will also shut down its Sao Paulo office. During the company's third-quarter earnings call, CEO Niccolo de Masi explained, "As part of this rebalancing throughout 2013 we will hold total R&D OpEx flat in absolute terms from Q4, 2012 levels."
These cuts will let Glu concentrate on its six other offices. Matt Ricchetti, Glu's president of studios, will also switch gears and lead the Kirkland office.
During its earnings call, the company deemed nine of the 11 titles it released during the third quarter as financial failures. Glu also lowered its outlook for the fourth quarter citing the poor performance of new titles in the third quarter; changes in Apple's (NASDAQ:AAPL) policy regarding HTML5; and Glu's decision to delay several titles from the fourth quarter to 2013.
Glu isn't the only gaming company to suffer financial troubles lately. In October Zynga (NASDAQ:ZNGA) CEO Mark Pincus revealed that the company would be closing its Boston studio and may also be closing its Japan and United Kingdom offices. "Additionally, we are reducing staffing levels in our Austin [Texas] studio," Pincus stated. In all the company sunsetted 5 percent of its workforce and pulled a dozen games.
Last year, Glu restructured some of its leadership including nixing vice president of marketing Michael Breslin, chief creative officer Giancarlo Mori and partnership program executive Sarah Thomson, reported Inside Mobile Apps.
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