Rovio Entertainment, the maker of hit game / franchise Angry Birds, is laying off up to a 130 people in Finland to move towards what it calls a 'simplified organization'.
That would represent up to 16% of its current workforce.
Notably, the news comes a few months after Rovio announced that it had received a 25 million euro facility from the European Investment Bank, an uncommon move in the technology industry.
In a blog post, Rovio's outgoing CEO admits the decision to cut jobs was forced because growth has been slower than it anticipated:
We are an entrepreneurial company and have been exploring multiple areas. We have been building our team on assumptions of faster growth than have materialized.
As a result, we announced today that we plan to simplify our organization around our three key businesses with the highest growth potential: games, media, and consumer products.
Unfortunately, we also need to consider possible employee reductions of a maximum of 130 people in Finland (approximately 16% of workforce).
It is never easy to consider changes like this, but it is better to do them sooner rather than later, when we are in a good place to reignite growth.
After announcing disappointing financial results for 2013, and co-founder Mikael Hed announcing that he will shortly be stepping down as CEO, this is the third time this year the creator of Angry Birds has come forward with bad tidings.
Has the company hit its peak?
Featured image credit: Twin Design / Shutterstock
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