article-img

Roblox Fired Around 30 Employees In its Talent Acquisition Organization

1 years ago By AI Smith

Roblox is a community-focused gaming platform which is particularly popular amongst kids. Recently, the company announced that it has downsized a substantial portion of its talent acquisition team. The company is firing around 30 employees, which hints at  a shift in the company’s focus from expansion to the bottom line.

Roblox issued a statement to TechCrunch, confirming that about 30 employees in its talent acquisition organization were laid off on Monday. No other teams are impacted.

“The aggressive growth targets Roblox was operating against in the past few years required a heavier investment in our TA organization,” said a Roblox spokesperson.

“With our commitment to getting our cash compensation growth in line with our bookings growth by the end of Q1 2024, we now need a smaller Talent Acquisition organization to meet our adjusted hiring needs. This action is the result of the reduction in our hiring targets to better align with our growth goals.”

There were speculations that the company was slowing down its hiring processes as part of its ongoing effort to cut costs. Roblox’s chief financial officer, Michael Guthrie, recently shared some insights from the firm’s recent Q2 earnings 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. We’ve already closed the gap pretty meaningfully on both of those two.

The company has undergone a period of rosy growth in the last few years, nearly tripling its daily active users from Q1 2020 to 66 million early this year. As its business balloons, it’s spending more on compensating developers. Developer exchange fees, which comprise the sum Roblox pays to creators who cash out the in-game currencies earned, amounted to $348 million in the first six months ended June 2023, compared to $290 million a year before. 

Despite growth in user numbers and hours spent on the platform, users aren’t spending more. Average bookings per DAU from the second quarter was $11.92, down 3% year-over-year. Roblox remains unprofitable, posting a net loss of $282.8 million in Q2 2023, up from $176.4 million the previous year.”

On the other hand Roblox’s active operation in China, which is a joint venture the company set up with Tencent in 2019, remains unaffected by this round of layoffs.

Roblox is an online game delivery and game creation system developed by Roblox Corporation.It enables users to create their own games and play the games created by other users. The platform was created jointly by David Baszucki and Erik Cassel in 2004 only to be released in 2006. It hosts user-created games of multiple genres coded in the programming language Lua. 

For most art of Roblox’s history, it was comparitivelysmall, both as a platform and as a company. However, it began to grow rapidly in the second half of the 2010s, and this growth has been accelerated by the COVID-19 pandemic.

More Recommendations
Unlock a World of Endless Discoveries: Your Personalized Recommendation Engine
article-image

The Game Awards 2023, an annual extravaganza celebrating the world of gaming and esports, are just around the corner. As… Read More

1 years ago AI Smith
article-image

Are you a Jujutsu Kaisen fan eagerly awaiting the next chapter of this gripping manga series? Well, you’re in luck!… Read More

1 years ago AI Smith
article-image

As Sundays roll around, gamers often find themselves seeking opportunities to enhance their gaming experiences, and Valorant, Riot Games’ immensely… Read More

1 years ago AI Smith
article-image

The world of “One Punch Man” is teeming with a diverse array of characters hailing from various corners of the… Read More

1 years ago AI Smith
article-image

In the latest Jujutsu Kaisen Season 2 episode, the much-awaited clash between Toji Fushiguro and Megumi takes the spotlight, creating… Read More

1 years ago AI Smith
article-image

Developer FromSoftware won The Game Awards’ Game of the Year 2022 award for its ARPG fantasy epic Elden Ring. And… Read More

1 years ago AI Smith
Stories Going Viral
Unleashing the Power of Stories
article-image

VCT 2023 Americas League, held earlier this year in the United States saw 10 partnered teams from the US battling… Read More

1 years ago AI Smith
article-image

Roblox Basketball Legends is an entertaining fun game that many players gravitate towards on the platform. It is similar to… Read More

1 years ago AI Smith
article-image

Dragon Ball has its fair share of unforgettable moments. From Goku becoming SSJ to the legendary Spirit Bomb, the work… Read More

1 years ago AI Smith
article-image

Swen Vincke, the founder of Larian Studio, reflects on the almost complete absence of  Belgian video game designer, director of… Read More

1 years ago AI Smith
article-image

If you play Pokemon Go or have seen your  friends play, you must have noticed Pokémon Go players often saying… Read More

1 years ago AI Smith
article-image

Gaming enthusiasts and narrative adventure fans, get ready to embark on a mesmerizing journey through nostalgia and regret. SIGONO, the… Read More

1 years ago AI Smith
Join Our Exclusive Newsletter and Stay in the Loop!