Financial Issues Forces GOG to Lay Off Employees

Facing financial pressures, CD Projekt owned distribution platform, GOG was forced to lay off ‘at least a dozen staff’ last week as confirmed by Kotaku. GOG did not state the exact reason as to why this lay off happened, but one of the laid-off employees has said that the company has been in a financial rut.

An official statement from GOG confirmed the story but did not offer much more clarification.

“Letting people go is never easy. “We have been rearranging certain teams since October 2018, effecting in closing around a dozen of positions last week. At the same time, since the process started we have welcomed nearly twice as many new team members, and currently hold 20 open positions.”

However, one of the laid-off staff offered to tell their side of the story, stating that the lay off is caused due to the company being in a financial complication. The person, who would remain anonymous, estimated that 10% of the staff were let go.

The person told Kotaku the following:

“We were told it’s a financial decision, 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.”

He also stated that the ‘market’s move to higher developer revenue affects the bottom line as well’.

Gwent, CD Projekt Red’s latest game, did not sell well as according to two people who work for the studio. The company blamed GOG’s small audience as one of the reasons for the game’s lack of success. The Thronebreaker campaign was then released on Steam after initially being a GOG exclusive.

It is a tough month for the video games industry as Activision, ArenaNet, FireMonkeys and Razer, are all hit by layoffs.

Author: Syazwan Bahri

A budding writer and an avid gamer. I hunt monsters, drive race cars, and slay space gods to keep the Last City safe.

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