Angry Birds maker Rovio may lay off up to 130 employees as it begins to restructure its business because of slowed growth. The potential layoffs represent around 16 percent of Rovio's employees and will come from unstated departments at its Finland headquarters. "It is never easy to consider changes like this," CEO Mikael Hed writes in a blog post today, "but it is better to do them sooner rather than later, when we are in a good place to reignite growth."
"It is never easy to consider changes like this."
Rovio skyrocketed in size over the past few years on the success of Angry Birds and various commercial products that capitalize on the property. But the numerous spinoffs its made over those years seemingly haven't had quite as huge of an impact. Its profits slipped last year, falling from €55.5 million (about $70 million) in 2012 to €26.9 million (about $34 million) in 2013, despite bringing in slightly higher revenues.
Hed says that Rovio is restructuring around "games, media, and consumer products," the three businesses where it sees the most room for growth. That pretty much sounds like what Rovio has already been doing, and the fact that two-thirds of its business may be media and products really shows what Rovio has become. There's already an Angry Birds TV show, and a movie (featuring high-profile comedians) is in the works. The property of Angry Birds is more important than any one game, and Rovio's goal from here out is likely to mine that even more.