Elite Dangerous developer Frontier sanctions hiring freeze, spending cuts, and layoffs
F1 Manager, Elite Dangerous, and Planet Zoo developer Frontier Developments has sanctioned layoffs as part of an organizational review.
The UK studio, which employs around 800 people, said it must tweak its business strategy to "refocus on its core strengths" following a period of disappointing financial performance.
"The organizational review announced today will reshape Frontier to deliver on that updated strategic plan more efficiently, return the company to profit, and create a sustainable foundation for the future," wrote the studio in a note to investors.
The company claims that review will deliver enhancements to Frontier's leadership and structure, drive efficiencies across the company, and reduce annual operating costs by up to 20 percent.
Notably, Frontier said those cost reduction efforts will be achieved through a "recruitment freeze, spending cuts and, unfortunately, redundancies, subject to consultation."
"The organizational review and resulting actions are expected to conclude by early 2024, placing Frontier in a strong position to deliver efficiently on its strategic plan over the medium term, and capitalize on future opportunities," added the company.
In a brief trading update, Frontier added that its existing game portfolio continues to perform in line with expectations ahead of an "important" holiday period during which the company intends to launch Warhammer Age of Sigmar: Realms of Ruin.
The Frontier board said it "remains comfortable" with market expectations for FY24 with "consensus revenue at £108 million and consensus Adjusted EBITDA loss of £9 million."
The board expects those aforementioned costs reductions to be "fully effective" before the start of the next fiscal year. Frontier added that it
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