Back in February, Kabam laid off approximately 8% of its workforce with CEO Kevin Chou saying it was spending $14 million per game it develops. Back in 2014, it received a $120 million investment from Chinese online retail giant, Alibaba.
A representative from Kabam confirmed the move in a statement:
Kabam’s business strategy is to focus on fewer, bigger, and bolder AAA mobile games. We have made the difficult decision to reduce the size of our San Francisco-based studio. While we are making several large investments in a new slate of games in multiple locations, we must also be mindful of costs. We are extremely grateful to all the employees who have contributed to the longstanding history of Kabam’s San Francisco studio. This hard but essential decision allows us to stay focused on our mission to create the world’s favorite massively multiplayer free-to-play games.
While we do not know how many were affected by the move, we wish them all the best in their future endeavours.