South Australian game studio Mighty Kingdom has laid off 40% of its staff in an effort to reduce business costs and “position the company for future success” amid current economic challenges. The news was posted to LinkedIn on Friday, although it followed a shareholder-facing ASX release which hinted at a major structural overhaul to come.
In the ASX release, Mighty Kingdom noted it was undertaking a significant “review process” to deal with “continued industry headwinds.” At the time, it was noted that a shift in staff numbers would likely result, with this having a material impact on the cost base of the company.
Now, it has confirmed at least a dozen staff will be impacted, and many roles will be restructured. Notably, Mighty Kingdom also laid off 28% of employees in May 2024, with this latest round of layoffs representing a further reduction for the company’s steadily-shrinking workforce.
As posted on LinkedIn, Mighty Kingdom leadership believes this step is essential for repositioning the business within a global economy, where opportunities for game developers are harder to grasp.
Read: Mighty Kingdom is laying off staff and “collapsing” management positions
Within its post, the studio has “highly recommended” departing staff, which include folks from QA, programming, art, production, and narrative design departments. It has posted a spreadsheet of those impacted who wish to share their credentials, encouraging other companies to consider hiring them.
“They have contributed significantly to our success over the years, and we thank them all for their hard work during this time,” Mighty Kingdom said. “If you can assist or hire, please consider reaching out to them.”
Unfortunately, the folks now out of work enter a much smaller games industry than they entered, where steady full-time and even part-time work is difficult to come by. Over the last few years, many of Australia’s biggest game studios – developers and publishers – have shut down or reduced staff, leaving fewer opportunities available. While many have been able to secure part-time work or stability through funding bodies, some have also been forced out of the industry altogether.
It’s a difficult time all around – and it’s unfortunate to see Mighty Kingdom in a position of needing to take these steps. Moving forward, the company has committed to remaining transparent, and to supporting its “team, players, and partners.”
Our thoughts are with those now out of work at Mighty Kingdom. Those in a position to hire can browse the list of staff impacted via LinkedIn.
