Swedish holding company Enad Global 7 (EG7) continues to downsize its teams. The latest cuts will affect two of its subsidiary studios: Toadman Interactive and Piranha Games.
Closure of Toadman Interactive
▫️Toadman Interactive is the studio with which the history of EG7 began. It was founded in 2013 in Stockholm and initially assisted other companies in game development. Gradually, it grew into a gaming holding, for which EG7 was established in 2020 as a parent company to manage it. At that time, a significant part of the business was transferred to EG7, and Toadman Interactive became a medium-sized studio again. The portfolio of Toadman Interactive includes games such as Immortal: Unchained, Bloodsports.TV, and EvilVEvil.
▫️EG7 explained the closure of Toadman Interactive by citing the crisis in the gaming industry and the studio's difficulties in finding new partners for co-development.
▫️According to EG7, the holding tried to improve the studio's situation but to no avail. For instance, layoffs were conducted last summer to reduce costs.
▫️At the time of closure, Toadman Interactive employed 69 full-time and freelance employees. Not everyone will lose their job. 42 people involved in the development of games for companies Cold Iron Studios and Daybreak Game Company will retain their positions at least until contract work is completed.
▫️EG7 expects that the closure of the studio will reduce the holding's annual expenses by 46.5 million Swedish kronor (4.17 million USD).
Layoffs at Piranha Games
▫️Piranha Games is a Canadian studio founded in 2000, known for developing the latest installments of the MechWarrior series.
▫️EG7 decided to optimize Piranha Games by laying off 38 employees. According to the information on the holding’s website, the studio currently has 106 employees.
▫️The reason for optimization is the underwhelming release of MechWarrior 5: Clans in October 2024. The game did not meet the necessary sales targets.
▫️It is expected that the layoffs at Piranha Games will save the holding 25.8 million Swedish kronor (2.3 million USD) by the end of the year.