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Mighty Kingdom announces cost reduction plans including staff layoffs

Strategy would reduce FTE within developer and administration teams
Mighty Kingdom announces cost reduction plans including staff layoffs

Australian indie games developer Mighty Kingdom is planning to reduce its costs by implementing a series of strategies, staff overhauls included.

According to Gameshub, the studio is planning a "reduction of FTE within the developer and administration teams" in addition to means of reducing "other fixed costs".

Mighty Kingdom’s Board of Directors is leading the restructure together with the company’s senior management, seeking to improve efficiency whilst delivering value to shareholders and maintaining a capacity to "capture new business".

Actioning initiatives

The Australian developer stated that there would only be a limited impact on its overall projections if it reduces its full-time equivalent, implying a larger impact on staff in the form of redundancies, Gameshub notes.

The news follows Mighty Kingdom’s reported net loss in revenue last month, when the company reported losses of $10.86 million in its financial year ending June 30 2022. The basic loss per share was found to be $0.07. However, the new press release states that Mighty Kingdom’s revenue "continues to increase".

"After an extensive internal review, we are actioning cost-saving initiatives that we see as a turning point in the company’s advance towards cashflow break-even and future profitability," said Mighty Kingdom managing director and CEO Philip Mayes.

"This process, in conjunction with an anticipated strong revenue lift by the end of this calendar year, will ensure our people are placed in the best possible positions and are able to work as efficiently as possible to deliver shareholder returns.

"We look forward to the positive effect these changes will have as we leverage our world-class creative team and reputation to unlock long-term value for our shareholders."

In June this year, Mighty Kingdom announced an agreement with California-based mobile games studio and publisher Lion Studios to co-develop a new title. The firm also announced a two-year co-development agreement with East Side Games in January.