A lowered fourth quarter guidance has sent the stock of San Francisco-based game publisher Glu south and resulted in layoffs at its Kirkland office.
On the company’s Nov. 2 conference call, Glu announced that it would hold total R&D investment flat between 2012 and 2013. As a result, the company restructured and the president of studios has taken control of the Kirkland office, where 25 percent of the headcount was laid off.
While Glu announced lower-than-expected Q3 losses, forecasts for Q4 were weak because the company’s new games aren’t doing well. After the earnings call, Glu’s stock fell 60 cents and continues to weaken.
Another reason for the disappointing forecasts are Apple’s prohibition of incentivized ads. This hurts Tapjoy, where about 13 percent of Glu’s revenue comes from. VentureBeat has a nice write-up of the Tapjoy drama over its app download incentives.
According to a company representative, Glu will also close its Sao Paulo office. The company was founded in 2001 and has remaining offices in San Francisco, Seattle, Canada, China and Russia.