As the fiscal year comes to a close, companies have been laying off staff all around. The latest victim is the digital video game storefront GOG, which laid off a dozen staff members last week, according to Kotaku.
GOG is a subsidiary of CD Projekt. The popular video game development studio CD Projekt Red, developers of The Witcher series, are a division under CD Projekt as well. In Kotaku's report, a laid off employee notes that the storefront is in financial trouble. Even just last year, CD Projekt Red launched the 1.0 version of Gwent and its latest RPG Thronebreaker: The Witcher Tales exclusively through the PC platform. After it didn't perform to expectations because of the limited reach of GOG, Thronebreaker made its way to other platforms like Steam in the weeks that followed.
GOG maintained in a statement that the layoffs are a part of the company's recent restructuring which began in October 2018. In a contradictory statement to Kotaku, a laid off employee cited the recent market trend towards higher developer revenue as one of many reasons. While Steam and GOG offer a 70/30 revenue split, the new Epic Games Store offers 88/12, and the Discord store offers 90/10. Other reasons cited by the employee include the fact that "GOG’s revenue couldn’t keep up with growth, the fact that we're dangerously close to being in the red has come up in the past few months" as reasons they were told for the layoffs, with it all amounting to a "financial decision."
GOG is the latest in a recent flurry of mass layoffs. This morning, employees at ArenaNet were laid off en masse as a result of "larger organizational restructuring." Earlier in February, Activision Blizzard laid off 800 people, even after its CEO bragged on an investors call about Activision's "record results in 2018."