Frontier Announces Staff Reductions Amid Organizational Review

British game developer Frontier has initiated a company-wide review, resulting in an undisclosed number of layoffs. This decision was disclosed to investors as part of a business update, where the company expressed its intention to "realign its focus on core competencies" following a period of underwhelming financial performance and challenging market conditions. The primary goal of this review is to "restructure Frontier" and restore profitability by implementing significant cost reductions. Key strategies include slashing annual operating expenses by up to 20%, achieved through spending reductions, a recruitment freeze, and an unspecified number of redundancies following a consultation period. The review and subsequent actions are anticipated to conclude by early 2024, with a progress update scheduled for release alongside the company's financial results in January. Recently published financial reports revealed an 8% decline in revenue to £104.6 million for the year ending May 31, coupled with an operating loss of £26.6 million, contrasting with the previous year's operating profit of £1.5 million. Factors contributing to this downturn included disappointing sales of the latest F1 Manager installment and the closure of Frontier's publishing arm, Foundry. Despite these challenges, the company's existing game portfolio is reportedly performing as expected, and there is optimism surrounding the upcoming release of Warhammer Age of Sigmar: Realms of Ruin, set to launch on November 17. The company remains confident in its prospects, stating that the board is "comfortable with market expectations for FY24, with consensus revenue at £108 million and consensus Adjusted EBITDA loss of £9 million," and expects the cost savings from the review to be fully effective by FY25.