25 people laid off from GREE’s U.S. offices, consolidates existing teams
Mobile-social gaming giant GREE announced a restructuring yesterday that will see part of the platform team moving from San Francisco back to its headquarters in Tokyo, with 25 people losing their jobs in the process, reported TechCrunch. GREE also created two new organizations in an effort to consolidate, which includes a publishing and partnerships team focusing on second and third-party studios and a growth and revenue team focusing on first and second-party games.
In GREE’s Q1 2013 quarterly results, the company’s net profit in Q1 2013 fell 26.3 percent quarter-over-quarter. The Japanese giant’s profit were hamstrung by the high costs of international expansion and the kompu gacha ban by Japan’s Consumer Affairs Agency. Kompu gacha is a practice that heavily incentivized the purchase of random virtual goods.
According to TechCrunch, most of the layoffs hit GREE’s social networking platform OpenFeint, which it recently announced it will shut down by Dec. 14. GREE first acquired OpenFeint in April 2011 for $104 million, with the hopes to further break into the U.S. market.