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Rovio has failed to create new hit games since the 2009 launch
of Angry Birds, the No. 1 paid mobile app of all time, though it
has tried to capitalize on its most successful brand by
licensing its use on string of consumer products.
The company is also pinning its hopes on an Angry Birds 3D
movie, due for release in May 2016 and which the company
believes will yield new licensing deals.
The company said sales had been lower than expected so far this
year and forecast flat sales and falling profits for the full
year. It said it was cutting up to 260 jobs, or about 37 percent
of the total.
"Fundamental changes are needed to ensure Rovio succeeds in its
global ambitions to be the leading entertainment company with
mobile games at its heart," Rovio CEO Pekka Rantala said in a
statement.
Rovio spokeswoman Kaisu Karvala said the company is looking to
concentrate on games, media and consumer products, and plans to
divest a preschool unit which has opened Angry Birds playgrounds
in China and Singapore.
Rovio, which cut 110 jobs in 2014, said however the planned
reductions would apply to the whole organization, excluding
those working on the movie in the United States and Canada. Most
of the cuts will hit its operations in Finland.
Last year, Rovio's total revenue fell 9 percent to 158 million
euros, while operating profit slumped 73 percent to 10 million
euros.
(Reporting by Jussi Rosendahl; Editing by David Holmes)
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