GOG lays off 10% of its staff, reportedly over financial problems

midian182

TechSpot Editor
Staff member

In a statement to Kotaku, a representative from the digital store said: “We have been rearranging certain teams since October 2018, effecting in closing around a dozen of positions last week. At the same time, since the process started we have welcomed nearly twice as many new team members, and currently hold 20 open positions.”

However, one of the unfortunate employees who was let go painted a different picture. They said that while GOG had an excellent January, the company has really struggled in February. The person added that the firm has been dangerously close to being in the red for a few months, and although general restructuring was not unprecedented, “layoffs that big have never happened before.”

It’s suspected that GOG’s struggles are partly related to the launch of the Epic Games Store, which offers developers an 88 percent revenue cut, as opposed to the 70 percent share offered by Steam and GOG.

Another problem GOG faces is its relatively small size compared to Steam. The excellent Thronbreaker: The Witcher Tales, which was published by GOG owner CD Projekt, didn’t sell as well as expected following an exclusive release on the store. It eventually appeared on Steam to boost numbers.

The news comes after Activision said it was laying off 775 people, or 8 percent of its workforce, despite generating record profits last year. EA is also letting people go, at its FireMonkeys studio in Australia. Ironically, both companies’ bosses made the ‘most overpaid CEOs’ list.

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Uncle Al

TS Evangelist
If memory serves, they did an immediate cut over from steam rather than a graduated development of the Epic store. Historically, these kinds of cut overs are rarely smooth and often result in negative results. Over the long run it will work out but the Epic management team should be the one's being laid off for their lack of insight and forethought, after all it is the developers and coders that make the company money .... without a product there is nothing to sell and management today is so over paid and bloated that they have trouble justifying their very existence .......
 

Fearghast

TS Addict
It's really sad, I have 100+ games on GOG, but I use it rarely.
It's incredible you are not restricted by DRM, you have all your Soundtracks just a click away, manuals, patches etc., BUT it seems it's not enough against Steam, Origin, U(don't)Play and new Epic.
 

BSim500

TS Evangelist
Personally I hope they stay around. If the absolute worst happens in the long run though, then the best advantage of GOG and their DRM-Free stance is all those Offline Installers backed up locally onto a NAS or couple of HDD's will keep on working (from Ultima 1 (1981) through to this year's releases). Almost 40 years of gaming history there and it won't disappear if and when the server's shut down.
 
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mbrowne5061

TS Evangelist
If memory serves, they did an immediate cut over from steam rather than a graduated development of the Epic store. Historically, these kinds of cut overs are rarely smooth and often result in negative results. Over the long run it will work out but the Epic management team should be the one's being laid off for their lack of insight and forethought, after all it is the developers and coders that make the company money .... without a product there is nothing to sell and management today is so over paid and bloated that they have trouble justifying their very existence .......
But we're talking about GOG, not Epic?
 
That would be **BAD** if GOG ever goes away. Ever since they offered Ultima IV for free on both PC and Mac and I found out that it's all DRM-free, I get every game I can there first. Not many AAA or newer ones, but I love their philosophy.
 

Kytetiger

TS Enthusiast
That would be **BAD** if GOG ever goes away. Ever since they offered Ultima IV for free on both PC and Mac and I found out that it's all DRM-free, I get every game I can there first. Not many AAA or newer ones, but I love their philosophy.
Same. I look first on GOG and HumbleBundle.

And don't forget GOG Connect, wich offers you some game DRM-free if you already own them on Steam!!