Digital Bros Announces 30% Workforce Layoffs To Include 505 Games

In a press release last night Digital Bros, owners of 505 Games (Kunos Simulazioni parent and co-developer on consoles), announced a reduction in workforce of up to 30%. Having seen several posts from 505 Games staff announcing their situation on LinkedIn, it does appear this has the capacity to affect titles like DRIFTCE, Assetto Corsa Competizione and Assetto Corsa 2, though the statement does say there will be “no significant effect of restructuring costs” on their already-announced projections.

I am hopeful that Kunos Simulazioni have emerged unscathed, as Assetto Corsa is one of Digital Bros’ biggest earners.

Digital Bros Group announces an organizational review, with an expected workforce reduction of approximately 30%. No significant impact on the expected results for FY2024
Digital Bros Group has reviewed its projects to align with the new competitive environment. This is expected to represent a reduction of approximately 30% of the global workforce, but no significant effect of restructuring costs is expected on the annual projected results for FY2024.

Milan, November 14th,2023 – Digital Bros Group (DIB:MI), videogames company listed on the Euronext STAR Milan (ISIN: IT0001469995) and part of the FTSE Italia Small Cap index and Euronext Tech Leaders, announces an organizational review across its development studios and publishing units.

The videogame market has evolved since the pandemic to be more selective in terms of new games, with consumers increasingly reverting to well established Intellectual Properties and playing these same games for longer periods. Digital Bros strategy has had to adapt to this new and evolving competitive scenario and will focus its efforts moving forward on the release of sequels and new versions of previously successful and established games, with a limited number of new larger budgets productions.

In order to prioritize high-quality and long-standing successful titles, Digital Bros has reconsidered the number of projects under development and as such, will review the organization structure accordingly to align with the evolving competitive environment in the medium to long-term to ensure maximum operational efficiency.

The restructuring program is expected to represent a reduction of approximately 30% of the global workforce, with the predominant portion concentrated within the studios.

Digital Bros management believes that this program will not impact the expected Profit and Loss statement for FY 2023-2024, with no significant effect of the restructuring costs on the annual projected results, due to the savings resulting from reduced payroll costs.

DIGITAL BROS GROUP
Listed on the Euronext STAR Milan and part of Euronext Tech Leaders, Digital Bros Group (ISIN IT0001469995) is a global company that has been operating since 1989 as a developer, publisher and distributor of video games through its brand 505 Games. The Group markets its contents on both retail and digital channels. Digital Bros Group is active around the world through its own direct operations in Italy, United States, UK, France, Spain, Germany, Czech Republic, China, Japan, Australia and Canada with 442 employees.