Glu shares plummet, game maker to cut jobs
December 2 2008 - 5:28 pm ET | Colin Gibbs | RCR Wireless News
Glu shares have tumbled to 24 cents each during the past 12 months.
Glu Mobile Inc.’s woes continued as the wireless-game maker said it will slash an unspecified number of jobs as part of an effort to trim operating expenses by $13 million.
Company executives declined to disclose the number of positions being eliminated; Glu also said it will relinquish certain leased properties to cut costs.
The San Mateo, Calif.-based publisher announced the layoffs after the closing bell Tuesday that saw Glu shares trading at 24 cents each, down drastically from a 52-week high of $5.82.
The move follows a whopping $56.9 million third-quarter loss Glu posted last month, citing a $46.6 million write-down of two if its three reporting units that were “determined to be below the carrying value of their respective goodwill balances.”
Like its competitors — many of whom have also struggled in the space — Glu sees hope in the new wave of high-end, multimedia-friendly handsets and the distribution channels that serve them.
“These decisions are difficult but necessary given the increasing economic headwinds facing our industry and the softening in consumer spending,” said Glu CEO Greg Ballard, who requested the board reduce his salary 25% to $281,850 until the company rights the ship. “By realigning our operations and resources worldwide, we are able to improve our financial performance in the near term while continuing to invest in key growth opportunities in the mobile games industry, especially surrounding high-end handsets and new platforms such as iPhone, Android and N-Gage.”
