Mighty Kingdom slashes 28% of staff, claims $2.1 million in annual savings
Adelaide game studio Mighty Kingdom has slashed 28% of its workforce, estimating $2.1 million in annual cost savings.
Adelaide game studio Mighty Kingdom has slashed 28% of its workforce, estimating $2.1 million in annual cost savings.
The company made the announcement on Monday, claiming the move was in an effort to ensure Mighty Kingdom continues to operate and achieve profitability.
Mighty Kingdom is referring to the move as a “rightsizing” and restructuring process to secure the future viability of the company, as well as future jobs.
“Whilst this has been an exceptionally challenging decision to make, it is necessary to ensure Mighty Kingdom continues to operate and employ people into the future,” the company said in a statement.
“We want to ensure our business reaches profitability as soon as possible to protect as many jobs as we can. This is as much about saving jobs as it is about reducing our workforce.”
According to the Mighty Kingdom’s update to the ASX, the workforce reduction is estimated to save $2.1 million per annum.
“The revised structure ensures the company can continue to execute on existing projects with key partners whilst providing flexibility to build and scale as new opportunities are secured,” the company said.
According to the Mighty Kingdom’s most recent financial report, it spent $12.6 million on salaries last year, alongside a $9.1 million net loss.
The past twelve months have been turbulent for Mighty Kingdom, with 2024 following suit with a continuing pattern of boardroom instability that has been evident since last year.
The boardroom battles resulted in the ousting of former chair Michelle Guthrie in November as well as attempts to roll the board in early 2024 by major shareholder and former CEO Shane Yeend.
In March 2024, the company saw David Yin step in as CEO, with Mark Aubrey and Chris Whiteman joining the board. Yin became the third CEO of MightyKingdom since January 2023.
Yin’s appointment coincided with a $6.2 million raise for the company to help build an AI Gaming Lab.
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