PopCap Announces Layoffs As Mobile Gaming Troubles Loom

One of the biggest brands in mobile gaming is about to let go of a good chunk of its talent pool.

On Wednesday, PopCap Games – which is owned and operated by Electronic Arts – confirmed a significant layoff of employees.

“This morning we informed our employees about a reorganization in our studios that will include a ‘Reduction In Force’ in our North American operation – mostly in our headquarters here in Seattle – and an ‘exploratory consultation’ to evaluate the future of our PopCap office in Dublin, Ireland,” the company announced on its blog today.

The company is also reportedly assessing the possibility of closing its Dublin, Ireland office.

A little context on why we’re making cuts in some areas while we’re investing and expanding in others: In the past year, we’ve seen a dramatic change in the way people play and pay for games. Free-to-play, social and mobile games have exploded in popularity. That happened fast. Surprisingly so. The change in consumer tastes requires us to reorganize our business and invest in new types of games on new platforms. It’s a completely different world from when we started.

“There’s also an economic component to the reorganization,” the post continues. “To stay in business, we need to manage costs, improve efficiency and maintain a profit. We’ve been able to invest in creative new games like Peggle and Plants vs. Zombies because we had a high profit business. That business is challenged, and if we don’t adapt, we won’t be able to invest in new IP. That sounds harsh – but if we don’t stay in business, no more plants, zombies, jewels, frogs or worms.”

To read the complete announcement from PopCap, click here.