Mighty Kingdom announces layoffs amid cost-cutting measures

Australian games studio Mighty Kingdom is undergoing cost-cutting measures which include laying off some of its full-time employees.

Desperate measures: It's looking to break even financially in the foreseeable future.

• The studio announced that it's aiming to "deliver a more sustainable business model" to break even with its operational cash flow by Q3 of the 2023 financial year.
• Mighty Kingdom will be reducing the number of full-time employees it has across its development and administrative teams to help reach its financial target, though the exact number of impacted staff was not disclosed.
• As part of its effort to have a "tighter cost control" across every facet of the company, it will be reducing fixed costs in IT and subscriptions among other business activities related to operations.

The rationale: The announcement, unsurprisingly, frames the cost-cutting measures positively despite the impact it'll have on select employees.

• Mighty Kingdom didn't comment specifically on why it's aiming to break even soon but it's no secret that the economic downturn has been tough for many games companies.
• In its latest financial report covering the fiscal year ending June 30, the studio revealed that it had generated $4.9M in revenue but made a loss of $10.9M.
• Layoffs have been rife across gaming and esports over the past few months. The likes of TikTok parent ByteDance, StreamElements, Jam City, Dignitas, GameStop, and Inven Global have all reduced their workforce since July.
• "This process, in conjunction with an anticipated strong revenue lift by the end of this calendar year, will ensure our people are placed in the best possible positions and are able to work as efficiently as possible to deliver shareholder returns," said CEO Philip Mayes.