Glu Mobile closes Brazil branch

Glu Mobile closes Brazil branch
Seth Tipps

By Seth Tipps

November 16th 2012 at 7:44AM

Layoffs hit Kirkland, Washington and San Francisco studios

Glu Mobile has closed its Brazil office based in Sao Paulo.

The company has also laid off workers in Kirkland, Washington and San Francisco.

Many firms have been adjusting to market changes as competition for the top spots on the App Store and Google Play intensifies.

“As mentioned during our earnings call on November 2nd, Glu will be holding total R&D investment flat between 2012 & 2013,” the company told GamesBeat.

"In order to do so and increase our monetization oversight we must rebalance our R&D function globally.

“Today we enacted a restructuring which has led to our President of Studios assuming direct control of our Kirkland office. As part of this global studio rebalancing we have reduced headcount by approximately 25 percent in Kirkland and 5 percent in San Francisco.”

While many companies have been making cuts in administration or marketing to save money, Glu is apparently making the decision to cut developers.

“In order to enhance Glu's global development efficiency and promote continued growth, we will also be closing our Sao Paulo office and concentrating resources in our other six locations," read a statement.

Yet another company plagued by rising costs, Glu is focused on raising the average revenue per daily user, maximising revenues versus the expense of user acquisition and server space.

"Over the coming 12 months we will be adding the necessary monetisation and server-side research-and-development resources to support our focus on increasing average revenue per daily active user company-wide," a spokesperson for the firm said.