RockYou has been in the habit of acquiring social, web, and mobile games from publishers who would otherwise shut them down. But today, the company is confirming that it is laying off 23 people, or about 10 percent of its U.S. work force.
Gamasutra, which first reported the news, quoted chief executive of RockYou Lisa Marino as saying in an email, “We also initiated other cost-cutting initiatives, as expenses were growing more quickly than was healthy for the business so we adjusted. Revenue is at a record high for Q4 and 2015 revenue is 2x 2014’s, but given our model, expense discipline and profitability metrics are most important.”
RockYou uses a different strategy in the nearly $30 billion mobile market, taking older games with loyal followings and keeping them operating. It also operates in the mobile ad network space.
A spokesperson for RockYou confirmed the report. Staffers reported the news first on social media.
San Francisco-based RockYou operates a network of games on shoestring budgets. It keeps them alive with a live operations staff and monetizes the remaining audiences through advertising. It has a global audience of 75 million players.