Playtika cuts 15% of its workforce amid shift to leaner teams that rely on AI

Israeli-founded online game developer Playtika Holding Co. is laying off 15 percent of its workforce, or about 500 employees, in a move to cut costs as it transitions from working in large teams to leaner teams that rely on AI and automation.

The gaming firm employs more than 3,000 workers globally, of which more than a third, or 1,273, are based in Israel, including its senior management. Playtika, which also has offices in the United States, said it is “committed to providing severance packages and support” to affected employees.

In a letter to employees, Playtika co-founder and CEO Robert Antokol explained that the company is undergoing a fundamental shift in its operations, which he said was necessary to “remain a leader in a highly competitive mobile games market.”

“For years, we operated with a broad growth mindset, applying similar resourcing models across our portfolio of games,” said Antokol. “The economic reality of our industry has shifted.”

“We are moving away from headcount-heavy operations to streamlined teams powered by AI and automation,” Antokol remarked.

As part of the new strategy, Playtika plans to leverage AI “to drive optimization, personalization, and efficiency,” while focusing on “retaining the best talent.”

“A leaner structure allows us to offer better compensation, clearer career paths,” said Antokol.

The streamlining measures will free up resources for investment into a pipeline of new games, he added.

Founded in 2010 with headquarters in Herzliya, Playtika was a pioneer in free-to-play games on social networks and mobile platforms and is the creator of such popular titles as Slotomania, House of Fun and Bingo Blitz. The maker of casino-style games and apps for poker and solitaire is facing a broader industry slowdown, especially in the mobile market, after a pandemic-driven boom in recent years.

In 2021, Playtika went public on the US Nasdaq stock exchange at a valuation of $13 billion. Over the past year, the company’s shares have more than halved, pushing its market value down to $1.38 billion.

Over the past two years, Playtika continued to invest in Israel with the acquisition of Tel Aviv-based peer SuperPlay for $1.95 billion and Israel-based Innplay Labs, a startup that focuses on the development of arcade and puzzle animation mobile games, for $300 million.

Reuters contributed to this report.