Don't miss
  • 2,232
  • 6,844
  • 6097
  • 134
Nicholas Lovell
Home   >   Game Over Zone   >   Habbo Hotel publisher Sulake to lay off 40 staff

Habbo Hotel publisher Sulake to lay off 40 staff

By on October 7, 2009

All is not well in the virtual world of Habbo Hotel.

Habbo screenshot

Parent company Sulake is starting the negotiation process to make 40 layoffs amongst its 200-strong Finnish workforce (the company employs 300 people globally).

Habbo Hotel was an early winner in making virtual goods a viable business model, and the game/virtual world is still seen as a pioneer in the market.

In 2008, the company made profits of €1 million on revenues of €50 million (via PaidContent.org), and its possible than in 2009, the revenues have come under pressure, leading to the need for cuts.

Sulake raised $23.5 million in a round led by Balderton Capital in July 2005 at a valuation of €65 million.

Added to the Job Loss Tracker.

About Nicholas Lovell

Nicholas is the founder of Gamesbrief, a blog dedicated to the business of games. It aims to be informative, authoritative and above all helpful to developers grappling with business strategy. He is the author of a growing list of books about making money in the games industry and other digital media, including How to Publish a Game and Design Rules for Free-to-Play Games, and Penguin-published title The Curve: thecurveonline.com