Playtika (NASDAQ: PLTK) announced Wednesday that it will reduce its global workforce by 15%, a move expected to generate $12 million to $15 million in restructuring costs as the mobile gaming company shifts resources toward higher‑growth initiatives.
The Israeli firm disclosed the layoffs in a Form 8‑K filing with the Securities and Exchange Commission, noting that the reductions are expected to be completed by the end of the current quarter.
According to the filing, the restructuring is designed to streamline operations and free up capital for new investments. “While the plan is expected to result in operating expense efficiencies, the company anticipates reinvesting a substantial portion of these expense reductions to advance growth initiatives,” Playtika wrote, adding that the ultimate impact on profitability will depend on the timing and scale of those reinvestments.
CEO Says Restructuring Marks a Strategic Reset
In a letter to employees, CEO Robert Antokol framed the layoffs as part of a broader transformation aimed at sharpening Playtika’s focus on titles with stronger long‑term potential.
The market reaction was muted. Shares traded lower following the announcement, reflecting investor skepticism after a difficult stretch for the company. Playtika’s stock is down 47% over the past year and has struggled since its IPO roughly five years ago. Concerns have centered on slowing user growth and heavy reliance on a handful of aging franchises, including Bingo Blitz, Caesars Slots, Slotomania, and World Series of Poker (WSOP).
Antokol, however, emphasized that the company is entering a new phase.
He told employees that Playtika must overhaul its cost structure to remain competitive, noting that the company can no longer afford to support mature titles at the same level while simultaneously investing in new games. “This transformation marks a new chapter,” he wrote. “By proactively reshaping our operating model, we are seizing the initiative to unlock new opportunities for growth, sharpen our focus, and build a foundation for durable success.”
Shift Toward Growth Titles and SuperPlay Integration
A key component of Playtika’s strategy is a renewed emphasis on growth titles and deeper integration of SuperPlay, the studio it agreed to acquire in September 2024.
SuperPlay’s hit game Dice Dreams has been a standout performer, surpassing $400 million in revenue as of July 2024—momentum fueled in part by the explosive popularity of rival Monopoly Go!, released in 2021.
Antokol acknowledged that newer titles require time to scale but argued that reallocating resources now is essential. “Growth titles take time to become profitable,” he wrote. “By tightening our resources in mature areas, we provide runway for our growth titles to succeed without jeopardizing our financial health.”
