Layoffs Hit GameFly

GameFly, the leader in video game rentals by-mail and on-demand through PC has laid off a number of its staff today as part of a restructuring plan, Joystiq reports. In a prepared statement to Joystiq GameFly CEO Dave Hodess said that these layoffs are part of the company's business aligning itself better to existing console and digital games markets.

"We studied our business and determined that we could operate with a smaller team while continuing to provide the same high level of service to our customers," said Hodess in a prepared statement provided to Joystiq. "Aside from a greater focus in our software development efforts, we're not making any significant changes in our console subscription or digital download businesses. GameFly remains profitable with a strong balance sheet."

While GameFly did not disclose the number of employees laid off, Joystiq outs the number at 35 employees in total, or 15 percent of the company's staff – based on talking to anonymous sources familiar with the situation.

GameFly operates a rent-by-mail operation similar to Netflix, and through GF Digital (the new name for Direct2Drive – the digital distribution service that it bought from IGN) it offers on-demand PC-based game content. The company also owns editorial site Shacknews and its download service Shackfiles.

Source: Joystiq


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