Playtika to lay off about 500 employees in 15% workforce cut
CEO Robert Antokol cites need to “right-size” the organization.
Playtika CEO Robert Antokol told employees on Tuesday that the company is carrying out a new round of layoffs and abandoning what he described as an unsustainable growth strategy, according to a letter sent to staff.
“Our broad growth mindset is no longer sustainable,” Antokol wrote, adding that Playtika must adjust its organizational structure and operating model in order to continue investing in future products.
The letter, which confirms the company will be laying off 15% of its workforce, impacting around 500 employees, follows reports from two months ago that Playtika was preparing to lay off about 20% of its workforce, or roughly 700-800 employees. Playtika employs around 3,500 people globally, including about 1,000 in Israel.
The current layoffs mark the fifth round of workforce reductions at Playtika since 2022. During that period, the company has cut more than 1,000 jobs. The most recent round prior to this took place in June, when Playtika laid off approximately 90 employees, including staff working on Best Fiends and Redecor, as well as employees at its subsidiary Wooga.
Antokol wrote that the company needs to reduce headcount in order to concentrate resources on a smaller number of projects. “We must right-size our organization to unlock the runway needed to invest in the future,” he said.
Playtika is listed on Nasdaq and has a market capitalization of about $1.4 billion.
In the letter, Antokol said Playtika would move away from spreading resources across a wide portfolio of games and teams. “We need fewer layers, smaller teams, and sharper focus,” he wrote, adding that not all projects would continue to receive the same level of investment.
The comments reflect a change from the company’s earlier expansion strategy, which included multiple studio acquisitions. In 2021, Playtika acquired Finnish studio Reworks, the developer of Redecor, for $600 million. The founders of Reworks left within two years, and Redecor was later among the titles affected by layoffs.
Antokol also said the company plans to rely more heavily on artificial intelligence and automation. According to the letter, these technologies are expected to improve efficiency and reduce the need for larger teams.
“We must leverage AI and automation to do more with less,” he wrote.
Antokol acknowledged that the layoffs would be difficult for affected employees but said the changes were being made “from a position of strength” and were necessary to support Playtika’s long-term strategy.
