Jam City has laid off 17% of its entire staff, representing a wave of layoffs affecting hundreds of developers across the company’s many studios.
Impacted developers began sharing the news on social media, while others in the industry voiced their support for impacted personnel. So far, the layoff appears to be largely affecting staff at living jurassic world developer Ludia, as well as the Jam City office in San Diego.
While the specifics of the studio are unconfirmed by Jam City, the layoffs at Ludia are believed to affect approximately one-third to one-half of the studio’s total workforce. We reached out to the company for comment and more details.
In a statement provided to VentureBeata spokesperson for Jam City said the decision to lay off between 150 and 200 employees is to “better [position] Jam City for long-term growth. The statement says the “current difficult global economy and its impact on the gaming industry” is a contributing factor, and adds that its recent acquisitions have forced it to “address layoffs associated with these transactions.” Later in the press release, the spokesperson assures that “Jam City remains profitable” despite its decision to lay off hundreds of people.
Jam City itself has owned Ludia for less than a year. The mobile-centric developer known for love bond and a long catalog of licensed mobile games like DC heroes and villains, was acquired in September 2021 for a total of $165 million as part of Jam City’s stated goal of acquiring studios specializing in licensed game development. At the time, Jam City CEO and Founder Chris DeWolf said the Ludia integration represented the company’s strategy to “acquire great businesses around the world and invest heavily in our current studios. “.
Previously, Ludia developed mobile games for the jurassic world franchise, as well as the mobile dating game love bond. With Jam City, he intended to use licenses from DC, Universal Pictures, and Disney.
This acquisition in 2021 came as Jam City closed a record $350 million investment to support its growth strategy, and soon after it abandoned plans to become a publicly traded company valued at 1.2 billion via a merger with DPCM Capital, Inc. These merger plans fell through into a mutual agreement between Jam City and DPCM, with a press release from both parties calling it “the best way forward” for all parties concerned.