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Gree offers redundancy to 11 per cent of workforce

Gree offers redundancy to 11 per cent of workforce

Thu 03 Oct 2013 8:00am GMT / 4:00am EDT / 1:00am PDT
PublishingDevelopment

Mobile firm seeks to reduce headcount by 200, closes Osaka office

The struggling Japanese mobile firm Gree has offered a voluntary redundancy plan to its employees, with an aim of reducing its total headcount by 11 per cent.

According to a document sourced and translated by the Japanese market analyst Dr. Serkan Toto, around 200 of the Gree's 1,762 employees will be given the deal. The company will be accepting applications between October 9 and October 28.

The ultimate goal is to reduce costs. This is further supported by Gree's recent decision - reported by the Nikkei, and translated by Dr. Serkan Toto - to close its Osaka office. The company only opened the office last year, but its 30 employees now have to take voluntary redundancy or relocate to the Tokyo HQ.

Gree remains a profitable company, but its recent financial results have showed a steep year-on-year decline as investments in new games and IP have not paid off. In May, it laid off staff in its San Francisco office, followed by the closure of its body textBeijing office in June, and a London office in July.

3 Comments

Nicholas Pantazis
Senior Editor

1,009 1,402 1.4
The Japanese Zynga, right here folks. Just like Zynga they made a lot of money early on and expanded extremely fast - far faster than they should have. This will not be the end of Gree's cutbacks I promise you.

The problem with mobile companies expanding into massive, publisher-sized empires is mobile markets remain a lottery. The vast majority of the audience doesn't care who the developer or publisher of their last favorite game was. They select games almost completely at random based on what catches their eye in an ad or what is in the top 10 on the market already. Being successful on one game gives you zero brand recognition for the next. This isn't the console or PC markets and these companies need to behave differently than they do on those markets if they want to survive.

Edited 1 times. Last edit by Nicholas Pantazis on 3rd October 2013 1:12pm

Posted:9 months ago

#1

Thomas Dolby
Project Manager / Lead Programmer

329 277 0.8
@Nicholas
Personally I think that brand recognition isn't all that far from the rest of the games industry, it's all about managing strong IP. I hate to point to Rovio with Angry Birds as an example, but they've managed to stay successful for a long time purely because they've nurtured a very very powerful brand. If Rovio release another Angry birds game it's almost a sure hit just like another Fifa or CoD.

Now go take a look at the catalogue of Gree and try to spot a powerful IP. It's no surprise to me that with a back catalogue like that they're not building on solid foundations.

Posted:9 months ago

#2

Paul Johnson
Managing Director / Lead code monkey

799 996 1.2
"Right guys, we did this thing. It was really successful. So lets scale, up do 10x more of that and then we'll all be earning 10x more moneyl."

Why the fuck has this lesson still not been learned.

Posted:9 months ago

#3

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