Israeli mobile games developer Playtika Holding has announced organizational changes and a round of layoffs, which featured in unofficial reports two months ago.

In the streamlining process, the company will dismiss 15% of its workforce during the first quarter of 2026 and will recognize costs of $12-15 million for compensating employees and accompanying costs. At the end of 2024, the company had about 3,500 employees. This means the company will shed 500 employees. Estimates are that about 1,000 of the company’s employees are in Israel.

Playtika founder and CEO Robert Antokol wrote in a letter to employees, “The decision was not made lightly, and it reflects a fundamental change in the way we operate, so that we can invest in the future and continue to lead in the highly competitive environment of the mobile gaming market.”

Antokol added that for years, Playtika has been operating from a broad growth perspective, while implementing similar resource allocation models across its entire game portfolio. “The economic reality of the industry has changed, and the ‘one-size-fits-all’ approach is no longer appropriate for the new reality,” Antokol wrote. According to him, in order to continue leading, the cost structure must be adjusted. “If we do not make the necessary adjustments to the cost structure today, we will compromise our ability to invest in the growth and future of the company.