Roblox, the popular gaming platform, has made significant cutbacks in its talent acquisition team, with approximately 30 employees being laid off. This move suggests a shift in the company's priorities, moving from rapid expansion to a greater focus on financial performance.
According to reports from TechCrunch, these layoffs occurred on a Monday and did not affect any other departments within the company. A Roblox spokesperson stated, "The aggressive growth targets Roblox was operating against in the past few years required a heavier investment in our TA organization."
However, the company has now adjusted its goals, with a commitment to aligning cash compensation growth with bookings growth by the end of Q1 2024. As a result, a smaller Talent Acquisition (TA) organization is needed to meet these adjusted hiring needs.
The report also noted that there were indications of an impending hiring freeze during Roblox's recent Q2 earnings call, which is part of the company's ongoing efforts to reduce costs.
Roblox's Chief Financial Officer, Michael Guthrie, mentioned during the call, "We will see leverage against pretty much all of the cost areas over the next 12 months. We think we’ll see a little bit of leverage in cost of goods sold because we’ve slowed down hiring, leverage against our compensation expenses because infra, trust and safety, we slowed down a little bit there."
It's worth noting that these layoffs do not seem to have affected Roblox's Chinese operation, which is a joint venture established with Tencent, a major internet and tech giant, in 2019.
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This move by Roblox reflects a strategic shift from a period of rapid expansion to one of more measured growth, focusing on achieving financial sustainability and efficiency.
Inputs from IANS
