Mobile gaming Playtika to Lay Off 100 Employees Amid Game Portfolio Restructuring

Mobile gaming giant Playtika is laying off approximately 100 employees, or about 3% of its global workforce, as part of a strategic restructuring following underperformance in key game titles. The move affects 40–50 employees in Israel and a similar number in Poland.

The company, which employs around 3,500 people globally—including 1,000 in Israel—confirmed that the layoffs will primarily impact teams working on the games Best Friends and Redecor.

Redecor Acquisition Disappoints

Playtika’s decision comes after the failure to scale Redecor, a virtual home design game developed by Finnish studio Reworks, which Playtika acquired in 2021. At the time, Playtika paid $400 million for an 80% stake, expecting the game to generate $30 million within six months.

However, the game fell far short of expectations. Playtika ultimately paid just $7.5 million for the remaining 20% of Reworks, far below the $200 million initially projected. Since the acquisition:

• Playtika recorded $41 million in write-downs in Q3 2023

• An additional $30 million in write-downs followed in Q4 2024

The company cited a lack of synergy with its existing game portfolio and disappointing financial results as the main drivers behind the impairment.

SuperPlay Acquisition Losses Persist

In contrast to Redecor, Playtika’s 2023 acquisition of Israeli studio SuperPlay for $690 million (with a performance-based earnout potentially raising the deal’s value to $2 billion) has shown more promise. Thanks to SuperPlay, Playtika’s Q1 2025 revenue rose 8.4% year-over-year to $706 million.

However, excluding SuperPlay, revenues declined, revealing underlying weaknesses in Playtika's legacy titles.

Despite the revenue bump, net profit under GAAP fell 42% to $31 million, following a net loss in Q4 2024. While Playtika returned to profitability, its core metrics showed strain:

• EBITDA fell from $186 million to $167 million

• SuperPlay is still loss-making

• The company’s flagship game, Slotomania, also experienced revenue softness

Strategic Focus Amidst Challenging Market 

Playtika appears to be tightening its operational focus amid mounting competition in the mobile gaming sector and shifting trends in player engagement. The layoffs and write-downs reflect a broader effort to streamline its game portfolio, improve profitability, and invest more heavily in growth areas with proven performance.

The company has not commented on whether further cuts or changes are expected in the near term but emphasized its commitment to focusing on long-term, sustainable growth.