Enad Global 7 (EG7) has returned to the cost-cutting mode. The Swedish holding company plans to reduce expenditures by laying off staff and restructuring its divisions.
MechWarrior 5: Clans
Toadman Interactive is shutting down
- In a post on its official website, EG7 cited the “continued industry challenges” and Toadman’s inability to secure new work-for-hire contracts at a necessary pace as the main reason behind its closure.
- The holding company said it took “several initiatives to turn the subsidiary profitable,” including layoffs last year. However, it wasn’t enough to save the studio.
- As a result, EG7 will be able to reduce its annual operating costs by SEK 46.5 million ($4.17 million), with this amount to be recognized in H2 2025.
- The closure of Toadman Interactive will affect 69 employees, of which 42 will temporarily remain with the company to complete ongoing work-for-hire contracts. The latter includes a partnership between EG7’s subsidiary Daybreak Game Company and Cold Iron Studios.
- Daybreak serves as a publisher of Cold Iron’s upcoming multiplayer shooter, also having allocated $23 million to fund the project. Cold Iron, for its part, hired Toadman in 2023 to co-develop the game, with a contract value of around $8 million.
- Interestingly, EG7 originally started as Toadman Interactive in 2013, providing various co-development services to other game companies. In 2020, the leadership set up a holding company called Enad Global 7 to operate an expanding business, while making Toadman its subsidiary.
- Toadman’s portfolio includes games like Immortal: Unchained, Bloodsports.TV, and EvilVEvil. It also contributed to the development of Warhammer Vermintide, EverQuest, The Lord of the Rings Online, PlanetSide 2, Killing Floor, and many other titles.
Layoffs at Piranha Games
- In a separate post, EG7 announced that it had initiated a “business optimization plan” at Piranha Games, a Canadian studio it acquired for CAD $31.4 million in 2020.
- As a result, 38 employees will be laid off, with the optimization expected to be finalized in Q2 2025. According to the official website, Piranha employs 106 people in total.
- EG7 cited poor performance of the studio’s latest game, MechWarrior 5: Clans, as the main reason for the job cuts. CEO Ji Ham stated that it “failed to reach new audiences and expand its core audience as anticipated and therefore has not met the necessary sales targets.”
- The holding company expects to save around SEK 25.8 million ($2.3 million) in annual costs, saying that the measures will also help Piranha continue to “operate with a sound profitability while being able to ship new content (DLCs) according to plan.”