Kabam, a gaming startup that has developed mobile games in collaboration with entertainment brands such as Disney, Marvel, and Universal, has laid off approximately 7% of its workforce, or approximately 35 employees, TechCrunch has heard via sources and the business has verified via email.
The Vancouver-based company told affected employees of the change earlier this week, according to a source with knowledge of the matter.
“As we at Kabam examined our strategic priorities, we decided to align our resource allocation with our objectives. In spite of the fact that we will continue to employ in crucial areas in the coming year, we will be reducing our staff by around 7%. “We are grateful for their contributions to our success and are assisting them through this difficult transition,” a Kabam spokeswoman told TechCrunch in an email.
The organization has more than 500 employees.
Kabam’s mobile game catalog includes Marvel Contest of Champions, Disney Mirrorverse, Shop Titans, Transformers: Forged to Fight, Mini Guns, Fast & Furious 6: The Game, Fast & Furious: Legacy, and Blastron, all of which have generated hundreds of millions of downloads. In addition to its headquarters in Vancouver, the corporation includes studios and offices in Montreal, San Francisco, Charlottetown, Austin, and Los Angeles.
The game company was founded in 2006 and operated as a startup until 2016 when it was acquired by Netmarble Games for an estimated $700 million to $800 million.
Netmarble’s North American operations joined with Kabam in March of this year. It attempted to introduce numerous Netmarble games to western markets.
Kabam is one of many software companies that have reduced their workforce due to the current economic downturn. Twitter and Meta have recently announced major layoffs in response to the growing economic crisis. Companies such as Netflix, Spotify, and Tencent have also laid off employees. Similarly, Indian businesses such as Unacademy, Byju’s, and Ola have laid off tens of thousands of workers to alleviate the load of limited funding and investments.