Frontier, the developer behind the likes of F1 Manager, Planet Zoo, and other management games, has announced layoffs as part of an organisational review of the business.
Investors were notified this morning in a trading update, in which the company said it plans to “refocus on its core strengths following a period of disappointing financial performance and more challenging industry conditions”, reports GamesIndustry.biz.
It’s currently unknown how many employees will lose their jobs.
Frontier aims to return to profitability and secure the future of the business by reducing annual operating costs by up to 20 percent.
This will be achieved through spending cuts, a freeze on recruitment, and the redundancies announced today following a consultation period expected to conclude by early 2024 alongside financial results in January.
Frontier said its games portfolio “continues to perform in line with expectations”, with the release of Warhammer Age of Sigmar: Realms of Ruin set for 17th November.
However, its F1 Manager games failed to meet sales expectations. After the release of F1 Manager 2022, the studio’s share price dropped by 40 percent and the more recent F1 Manager 2023 has similarly underperformed.
GamesIndustry.biz reports the company’s most recent financial results (from September) show a revenue drop of 8 percent to £104.6m for the last financial year. It had an operating loss of £26.6m compared to an operating profit of £1.5m the previous year.
“Frontier’s annual management sim offers some small refinements over its predecessor but a lack of major upgrades means it doesn’t snatch pole,” reads our Eurogamer review of F1 Manager 2023.
Other companies hit with layoffs recently include Team 17, Epic Games, and Crystal Dynamics.