Enad Global 7 Closes Toadman Interactive and Cuts Jobs at Piranha Games

Swedish group Enad Global 7 has announced plans to optimise its business. As a result, the team at Piranha Games will be reduced and Toadman Interactive will be closed. Toadman also had an office in Berlin.

Enad Global 7 (EG7) has announced the initiation of a business optimisation plan at Piranha Games following the underperformance of its latest project, MechWarrior 5: Clans. The cost saving measures are expected to result in annual savings of approximately SEK 25.8 million, approximately €2.24 million. This will affect approximately 38 employees at Piranha and will be finalised by the second quarter. The measures announced will ensure that Piranha continues to operate with solid profitability, while at the same time being able to deliver new content (DLC) according to plan.

"The team at Piranha truly delivered a high-quality game that exceeded both internal as well as external expectations in terms of quality, story and gameplay. Despite the phenomenal work by the team at Piranha, the game failed to reach new audiences and expand its core audience as anticipated and therefore has not met the necessary sales targets, which has forced us to undertake necessary sctions"; said Ji Ham, CEO of EG7.

In addition, the Board has initiated a process to wind down operations at Toadman Interactive. Toadman started in 2013 in Stockholm, first as a work-for-hire consultancy studio, and in 2017 they started developing their own games (Immortal: Unchained, EvilVEvil). In 2017 they opened an office in Berlin, followed by other studio acquisitions and openings. Already in August 2024 the offices in Stockholm, Visby and Oslo had to be closed. There were also layoffs in Berlin.

"This decision does not come lightly and follows several initiatives to turn the subsidiary profitable, including the cost-saving measures executed last year. Ongoing Work-for-Hire (WFH) contracts with Daybreak and Cold Iron will be protected in this process, this means that a complete closure of activities will be optimized to fulfill the contract's deliverables. This will have an immediate effect on all employees not engaged in these contracts," the company states. "This decision will affect 69 employees and subcontractors of which approximately 42 will stay engaged in the protected projects mentioned above over a transition period to fulfil the contract's deliverables."

Headquartered in Stockholm, Enad Global 7 has approximately 630 employees in 16 offices around the world, including more than 470 game developers. The group's studios are Daybreak Games, Piranha Games, Toadman Studios and Big Blue Bubble. The group's publishing and distribution arm is Fireshine Games (formerly Soldout).