Kabam, the gaming company that has developed mobile games in partnership with entertainment brands including Disney, Marvel and Universal, has laid off about 7% — about 35 employees — of its workforce, sources told TechCrunch and confirmed to the company via email.
The Vancouver-based company notified affected employees of the move earlier this week, a person familiar with the development said.
“As we at Kabam reviewed our strategic priorities, we made the decision to align our resource structure with our goals. This means that while we will continue to hire in key areas over the coming year, we will unfortunately be reducing our workforce by around 7%. We are thankful for those we separate from [sic] their contribution to our success and support them in this challenging transition,” a Kabam spokesperson said in a statement emailed to TechCrunch.
The company employs over 500 people.
Kabam has a catalog of mobile games that generates hundreds of millions of total downloads, including Marvel Contest of Champions, Disney Mirrorverse, Shop Titans, Transformers: Forged to Fight, Mini Guns, Fast & Furious 6: The Game, Fast & Furious: Legacy, and blastron. In addition to its headquarters in Vancouver, the company also has studios and offices in Montreal, San Francisco, Charlottetown, Austin and Los Angeles.
Founded in 2006, the gaming company ran as a startup until 2016 when it was acquired by South Korea’s Netmarble Games for a reported $700-800 million.
In March of this year, Netmarble’s North American business merged with Kabam. The aim was to bring many Netmarble game titles to the western market.
Kabam is one of many companies in the tech world that has shed its workforce during this economic slowdown. In recent days, the impact of the ongoing financial crisis has been largely seen through massive layoffs announced by Twitter and Meta. Companies like Netflix, Spotify and Tencent are also laying off some of their employees. Similarly, Indian startups like Unacademy, Byju’s and Ola have laid off hundreds and thousands of employees to ease the strain of limited funding and investment.