Games News

GOG lay off 10% of workers amidst reported financial trouble

GOG
Picture of GOG logo in white on a purple background
GOG

When it comes to the games industry, 2019 has sure started off on more than one bad note and now we hear that CD Projekt Red's digital games store GOG is in trouble as well, having quietly laid off 10 per cent of its staff the week before.

It is said that at least a dozen employees have lost their jobs, which CDPR described as necessary for the reorganisation they've been performing since October 2018. 

CDPR argue that while laying off people is never easy, they've "welcomed nearly twice as many team members, and currently hold 20 open positions."

Unofficial reports, however, paint a much grimmer picture, claiming that the reason for the layoffs was a dire financial situation in CDPR's storefront.

"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, and the market's move towards higher revenue shares has, or will, affect the bottom line as well", a laid-off employee told Kotaku.

Just to jog your memory, Epic Games Store's revenue split has the company charging 12 per cent compared to the current industry standard of 30 per cent, so GOG are obviously feeling the burn.

The same employee said that GOG has had a great January but it all went south too quickly, as a "really bad" February was now compounded by the store's biggest layoffs yet.

Things haven't been looking up in the gaming department either, short of the attention drawn by Cyberpunk 2077. A recent conference call revealed that even CDPR are a bit disappointed with the slow start of Thronebreaker: The Witcher Tales.

At the time, they intended for Thronebreaker: The Witcher Tales to be a GOG exclusive but their store's "incomparably smaller" reach was quickly amended by adding it to Steam, something they later claimed was always among their plans.

CD Project RedPicture of GOG logo in white on a purple backgroundThronebreaker: The Witcher Tales

CDPR's statement suggested that the reorganisation period is over and we really hope this is the case, as the industry hasn't been short of layoff stories lately.

You can find the employee's statement to Kotaku here.