Finnish mobile games maker Rovio, owner of the Angry Birds brand, on Thursday said it would cut about 110 jobs, or 14 percent of its workforce, and shut down a Finnish studio following talks with employees.Rovio announced a plan to cut up to 130 jobs in October, saying growth had not been as strong as expected.
The company said it will also consolidate its Finnish operations at its headquarters in Espoo.
Rovio has recently expanded the Angry Birds brand into an animated TV series, toys and clothing, while it has struggled to retain mobile players amid competition from new games.
Its operating profit halved last year to EUR 36.5 million (approximately Rs. 279 crores) due to investments and stalling sales.
"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 organisation ... we also need to consider possible employee reductions," Chief Executive Mikael Hed said in a statement.
Angry Birds, in which players use a slingshot to attack pigs who steal birds' eggs, is the No.1 paid mobile application of all time, according to Rovio.
Analysts have said Rovio has been late to respond to a shift to freely available games on smartphones and tablets that make money when players buy virtual items to succeed in the game.
"In New York, [retailers] Toys R Us and Barnes & Noble seem to have reduced shelf space for Angry Birds products," said Tero Kuittinen, an analyst with media research company Frank N. Magid Associates.
The company said it will also consolidate its Finnish operations at its headquarters in Espoo.
Rovio has recently expanded the Angry Birds brand into an animated TV series, toys and clothing, while it has struggled to retain mobile players amid competition from new games.
Its operating profit halved last year to EUR 36.5 million (approximately Rs. 279 crores) due to investments and stalling sales.
"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 organisation ... we also need to consider possible employee reductions," Chief Executive Mikael Hed said in a statement.
Angry Birds, in which players use a slingshot to attack pigs who steal birds' eggs, is the No.1 paid mobile application of all time, according to Rovio.
Analysts have said Rovio has been late to respond to a shift to freely available games on smartphones and tablets that make money when players buy virtual items to succeed in the game.
"In New York, [retailers] Toys R Us and Barnes & Noble seem to have reduced shelf space for Angry Birds products," said Tero Kuittinen, an analyst with media research company Frank N. Magid Associates.
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