Playtika lays off 15% as “market reality changes”

Israeli mobile games developer Playtika Holding Corp. (Nasdaq: PLTK) has announced organizational changes and a round of layoffs, which featured in unofficial reports two months ago. In the streamlining process, the company will dismiss 15% of its workforce during the first quarter of 2026 and will recognize costs of $12-15 million for compensating employees and accompanying costs. At the end of 2024, the company had about 3,500 employees. This means the company will shed 500 employees. Estimates are that about 1,000 of the company’s employees are in Israel.

Playtika founder and CEO Robert Antokol wrote in a letter to employees, “The decision was not made lightly, and it reflects a fundamental change in the way we operate, so that we can invest in the future and continue to lead in the highly competitive environment of the mobile gaming market.”

Antokol added that for years, Playtika has been operating from a broad growth perspective, while implementing similar resource allocation models across its entire game portfolio. “The economic reality of the industry has changed, and the ‘one-size-fits-all’ approach is no longer appropriate for the new reality,” Antokol wrote. According to him, in order to continue leading, the cost structure must be adjusted. “If we do not make the necessary adjustments to the cost structure today, we will compromise our ability to invest in the growth and future of the company. We cannot continue to allocate resources to mature games at the same historical levels while simultaneously trying to build a new future. By precisely adjusting our investment scope across our entire game portfolio, we can free up the resources needed to invest in games with high growth potential,” he explained.

Antokol continued, “This time is different,” because the change opens a new chapter for the company that will create new growth opportunities for it. “This is not a retreat, but a proactive move to focus strength and power. Our aim remains unchanged: to be the leading independent mobile games company in the West,” Antokol wrote, adding that Playtika will do this, among other things, by developing a new game development channel and expanding direct-to-consumer (DTC) sales, as well as using AI and automation. “This is our moment to shape the next decade of Playtika. “I am confident that with your passion and focus, we will not only get through this period, but we will grow together and lead Playtika to be stronger than ever,” concluded Antokol.

The company has implemented several rounds of layoffs in recent years

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Playtika held its IPO on Nasdaq in January 2021. The company’s valuation at the time of the flotation was $11.1 billion but since then it has lost 865 of its value and today only has a market cap of $1.4 billion. Playtika develops mobile games, including casino and casual games, and over the years has implemented several rounds of layoffs. The company is profitable and distributes dividends but is struggling to show growth. Playtika ended both 2023 and 2024 with erosion in revenue, while net profit has been inconsistent – in some years since the IPO it has grown, and in some it has shrunk (in the first three quarters of 2025, net profit fell by 42%).

According to its 2025 guidance, Playtika will end the year with revenue of $2.7-2.75 billion and adjusted EBITDA of $715-740 million – numbers that reflect growth of 5.9%-7.9% in revenue (after falling in 2024) and a decrease of 2.3%-5.6% in EBITDA compared with 2024.

Published by Globes, Israel business news – en.globes.co.il – on January 14, 2026.

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