Mad Catz, the company known for making video game peripherals and publishing Rock Band 4, will be seeing sizable layoffs. This news comes from a report by Gamasutra.
The company has announced it had to lay off 37 percent of its staff. This layoff is company-wide. The reason for these cuts is budgetary, with Gamasutra reporting that Mad Catz will save $5 million a year starting April 1. This is the beginning of Mad Catz’s fiscal year.
The major reason for the layoffs is due to the lackluster sales of Rock Band 4. "... Rock Band sell-through was lower than originally forecast resulting in higher inventory balances as well as lower margins due to increased promotional activity with retailers," president and CEO Karen McGinnis said in a statement.
The announcement of the layoffs comes after yesterday’s news that company president and CEO Darren Richardson, senior VP of business affairs Whitney Peterson and company chairman Thomas Brown all had resigned.
iDigitalTimes wishes the best of luck to all affected by the layoffs.
So what do you think? Are you surprised to see Mad Catz laying off so many employees? Are you surprised by the lack of Rock Band 4 sales? Let us know your thoughts in the comments section below.
