Rovio Entertainment, the Finnish game developer best known for the Angry Birds franchise, has laid off 36 employees as part of an internal restructuring effort.
The decision follows the underperformance of one of its mobile titles, Angry Birds Dream Blast, and reflects broader challenges facing the gaming industry in 2025.
The layoffs affect both senior and mid-level staff across multiple departments.
The move places Rovio among a growing number of gaming companies that have trimmed their workforce this year in response to shifting market dynamics, changing consumer behavior, and the need to streamline operations.
Focus Shifts to Core Titles and Market Responsiveness
A Rovio spokesperson confirmed the layoffs, stating that the company is reorganizing to better respond to market conditions and to adopt a more game-centric approach.
“We have been renewing our organization this autumn in reaction to one of our games underperforming and in order to better respond to the market, to move towards a more game-centric approach, and to be able to iterate fast on new titles,” the company said in a statement.
Rovio’s Finland-based team will focus on fewer games as part of the restructuring. Its Barcelona office is expected to take on a larger share of development responsibilities.
This shift is intended to allow for faster iteration and more targeted development efforts in line with player preferences and market trends.
Rovio Angry Birds Dream Blast Falls Short of Expectations
Angry Birds Dream Blast, a puzzle-based mobile game launched in 2019, has not met performance expectations in recent quarters.
The game initially gained traction among casual gamers.
However, it has struggled to maintain user engagement and revenue growth in a highly competitive mobile gaming landscape.
The underperformance of Dream Blast was a key factor in the company’s decision to reduce headcount.
However, Rovio clarified that no upcoming games have been canceled as a result of the restructuring.
Sega’s Role and Future Outlook
Japanese gaming giant Sega acquired Rovio in 2023 for approximately $776 million.
Sega aimed to strengthen its mobile gaming portfolio and expand its global reach through the acquisition.
Sega has not issued a separate statement regarding the layoffs.
Looking ahead, Rovio plans to concentrate on fewer, more impactful titles and leverage its core intellectual property.
The company’s ability to adapt to market demands and deliver engaging content will be critical to its future success.
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