Mobile game developer Metacore has confirmed the layoff of 159 employees based in Finland, alongside the permanent closure of its operational studios in Germany and Sweden. The restructuring marks a significant contraction for the company best known for its hit title Merge Mansion.
The company announced the workforce reduction and studio closures in an official update posted on its corporate website. According to Metacore, the decision was made to refocus the business on its core operations following a strategic review of its organizational structure.
Background of the restructuring
Metacore is a Helsinki based mobile gaming studio that achieved global recognition with Merge Mansion, a puzzle game combining home renovation and narrative driven gameplay. The title has been a steady revenue generator for the company since its release.
The restructuring process involves the dismissal of 159 employees from the company’s Finnish operations. Simultaneously, the company is shutting down its studio locations in Germany and Sweden, effectively ending all development and operational activities in those countries.
The layoffs represent a substantial portion of the company’s total workforce. Prior to the cuts, Metacore employed several hundred staff across its European offices.
Reasons cited by the company
In its public statement, Metacore attributed the cuts to a need for operational efficiency and financial sustainability in a highly competitive mobile gaming market. The company stated that the reorganization is intended to streamline decision making and consolidate resources into fewer, more focused projects.
The developer did not indicate that any specific game or product line had been cancelled. However, the closure of offices in Germany and Sweden suggests a significant reduction in the company’s overall development capacity outside of Finland.
Implications for the Merge Mansion franchise
Metacore has not announced any changes to the ongoing support or live operations of Merge Mansion. The game remains available on mobile platforms and continues to receive content updates from the remaining development team in Finland.
The company has not confirmed whether any of the affected employees in Germany and Sweden have been offered relocation or remote work opportunities. The layoffs are expected to take effect according to local labor laws in each respective jurisdiction.
Industry context
The layoffs at Metacore are part of a broader trend of workforce reductions across the mobile gaming sector. Several other major studios have announced similar restructuring measures in recent months, citing rising user acquisition costs, shifting player demographics, and a cooling investment environment following the pandemic era boom.
Mobile gaming remains a highly competitive market, with smaller and mid tier studios facing particular pressure to maintain profitability while sustaining live service titles. Developers that rely heavily on a single hit game, such as Merge Mansion, are especially vulnerable to market volatility.
Expected next steps
Metacore has stated that it will assist affected employees with severance packages and outplacement support where possible. The company has not provided a specific timeline for the completion of the layoffs or the final closure of the German and Swedish offices.
In the coming months, the studio is expected to focus its remaining resources on sustaining Merge Mansion and potentially developing new projects from its headquarters in Finland. No further restructuring announcements have been indicated at this time.
Source: GamesIndustry.biz
