CD Projekt Layoffs Spur Creation Of Polish Game Developer Union, Avalanche Studios Also Sees 100+ Employees Join Union
Portfolio Pulse from Franca Quarneti
A new Polish game developer union, the Polish Gamedev Workers Union, has been formed in response to three rounds of layoffs at CD Projekt ADR (OTC:OTGLY). The layoffs were part of a strategic realignment to match team size with ongoing projects. The estimated cost of the layoffs, including severance payments, was around $1.1 million. In a parallel development, Avalanche Studios Group is witnessing more than 100 of its employees joining the Swedish trade union, Unionen.
October 09, 2023 | 4:56 pm
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CD Projekt ADR (OTC:OTGLY) has experienced three rounds of layoffs, leading to the formation of a new union. This could lead to increased labor costs and potential disruptions in the future.
The formation of a union at CD Projekt could lead to increased labor costs as the union may negotiate for higher wages or better benefits. Additionally, the union could potentially organize strikes or other actions that could disrupt the company's operations. This could negatively impact the company's profitability and stock price in the short term.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100