The bad news had an immediate impact on Gumi's shares, as they plummeted to a low of 1,282 yen, which is less than half of its listing price of 3,300 yen at the time of the IPO. Gumi is expecting an operating loss of 400 million yen ($3.4 million) compared to a previous forecast of a 1.3 billion yen profit.
The company recently surprised its shareholders by forecasting an operating loss for the 12 months ending on April 30. Specifically, Gumi said it was offering buyouts to employees and selling assets related to a couple games for older mobile phones, as well as for two of its browser-based games, including Dragon Genesis. About 100 employees will be leaving next month in January Gumi had 901 employees.Īpart from a workforce reduction, Gumi is planning to sell some assets to help it recover from losses it expects this financial year. Now just three months later, the publisher is laying off 11 percent of its workforce, according to Reuters. With Brave Frontier driving tons of revenue for Gumi in Japan, this past December the company held an IPO worth 45 billion yen ($377 million), making it one of Japan's largest IPOs during 2014.
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