kabamthe gaming company that has developed mobile games in conjunction with entertainment brands such as Disney, Marvel and Universal has laid off about 7% – about 35 people – of its workforce, londonbusinessblog.com has learned from sources and confirmed with the company via email.
The Vancouver-based company informed affected employees of the move earlier this week, said a person familiar with the development.
“As we reviewed our strategic priorities at Kabam, we made the decision to adapt our resource structure to our objectives. This means that we will unfortunately reduce our workforce by approximately 7%, although we will continue to work in key areas over the coming year. We are grateful for those with whom we say goodbye [sic] their contributions to our success, and support them in this challenging transition,” a Kabam spokesperson said in an emailed statement to londonbusinessblog.com.
The company has a workforce of more than 500 employees.
Kabam has a catalog of mobile games that total hundreds of millions of downloads, including Marvel Contest of Champions, Disney Mirrorverse, Shop Titans, Transformers: Forged to Fight, Mini Guns, Fast & Furious 6: The Game, Fast & Furious: Legacy and blastron. The company also has studios and offices in Montreal, San Francisco, Charlottetown, Austin and Los Angeles – in addition to its headquarters in Vancouver.
Founded in 2006, the gaming company was a startup until 2016 when it was acquired by South Korea’s Netmarble Games for a reported $700 million to $800 million.
In March of this year, Netmarble .’s North American operations merged with Kabam. It was intended to bring many Netmarble game titles to western markets.
Kabam is one of several companies in the tech world that have reduced its workforce during this economic slowdown. In recent days, the impact of the ongoing financial crisis has largely been seen in the massive layoffs announced by Twitter and Meta. Companies such as Netflix, Spotify and Tencent are also letting some of their staff go. Similarly, Indian startups such as Unacademy, Byju’s and Ola have also laid off hundreds and thousands of employees to ease the burden of limited funding and investment.