Game developer Mighty Kingdom to cut staff numbers

The ASX-listed game developer will cut a large proportion of its workforce in a bid to return to profitability.

Mighty Kingdom has developed games including Conan Chop Chop.

Game developer Mighty Kingdom will slash its workforce by 28 per cent in an effort to achieve profitability by the first half of next financial year.

The Adelaide-based company said the move would save it $2.1m per year.

“The revised structure ensures the company can continue to execute on existing projects with key partners whilst providing flexibility to build and scale as new opportunities are secured,” the company said in a statement.

“Whilst this has been an exceptionally challenging decision to make, it was necessary to ensure Mighty Kingdom continues to retain and employ its talented people into the future.”

Chief executive David Yin said the company’s management “need to be diligent in making the necessary decisions to deploy our existing capital effectively to grow the company”.

It is understood the company employs about 90 staff.

The company spent $12.6m on wages and salaries last year, according to its annual report.

It made a net loss of $9.1m last financial year, down from a loss of $10.9m the previous year.

Mighty Kingdom had a turbulent year in 2023, with a tussle for control of the board which led to former chair Michelle Guthrie being voted off the board.

The company recently refreshed its management team, with Mr Yin taking on the chief executive role and game development industry veterans Mark Aubrey and Chris Whiteman joining the board.

Mighty Kingdom recently raised $6.2m in a rights issue to recapitalise the company, with a further $1.98m to be raised subject to shareholder approval.

The company is now focused on growing its work for hire business, and is also looking to set up an AI Gaming Lab to drive growth.

Mighty Kingdom shares were unchanged at 0.5c on Monday.

Originally published as Game developer Mighty Kingdom to cut staff numbers