Frontier s the Layoff Wave; Explains With Poor Sales of F1 Manager
The poor performance of the F1 Manager series is one of the main reasons for restructuring at British studio Frontier Developments, as a result of which an unspecified number of people are about to lose their jobs.
Another development studio plans to lay off some of its employees. After Frontier Developments is planning to cut jobs, as part of a reorganization.
As reported by GamesIndustry.biz, this morning investors in the said company were informed of the planned reshuffle, which is a a result of "disappointing financial results and tougher industry conditions".
As a result, the British company is expected to refocus on its strengths, which in the long run will ultimately restore its profitability and provide the right conditions for the future.
Unfortunately, the PR "newspeak" hides the fate of an as yet unspecified number of the company's employees, who will most likely bid farewell to their positions.
After all, as GamesIndustry.biz reports, the key task of the studio's management is now to reduce annual operating costs by about 1/5. The way to achieve this goal is to include budget cuts in future projects, as well as layoffs that will follow the consultation period.
The entire process of "reorganization" is scheduled to end in early 2024, and the full results should not be expected until fiscal 2025.
The not-so-good financial situation of Frontier Developments is said to be due to two main factors:
- first and foremost disappointing result of the installment from 2023, which was said to have sold below expectations; its predecessor was not overly popular either (via SteamDB);
- June closure ofFrontier Foundry, a subordinate publishing company whose continued operations were negatively assessed in of profitability.
Despite the troubling news coming from Brits, the studio is optimistic about the release of Warhammer Age of Sigmar: Realms of Ruin, which will take place on November 17.
In addition, existing games in the company's portfolio have "performed in line with expectations," and its management assures that it "remains satisfied with its financial projections for fiscal 2024."
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