Japan game developer Gumi to cut jobs, sell assets three months after IPO
By Tomo Uetake
TOKYO (Reuters) - Just over three months after raising hundreds of millions of dollars in a stock market listing, Japanese mobile game developer Gumi Inc plans to cut 10 percent of its workforce and sell assets as part of a drive to bounce back from losses it expects this financial year.
The moves come three weeks after Gumi shocked investors by forecasting an operating loss for the 12 months ending Apr. 30. It made its debut on the Tokyo Stock Exchange's main board in a prestigious 45 billion yen (253.5 million pounds) initial public offering last December, one of Japan's biggest in 2014.
In a statement released after the market's close on Friday, Gumi said it was offering buyouts to employees and selling assets related to two game titles for older mobile phones.
Gumi said it expects around 100 employees will take up its offer to leave the company on Apr. 30, equivalent to 11 percent of its 901 employees as of January.
The company also said it was selling assets related to two of its browser-based games, including fantasy game "Dragon Genesis".
Earlier this month, Gumi slashed its sales and profit guidance, saying it expected an operating loss of 400 million yen (2.3 million pounds) in the year through April, compared to a previous forecast of a 1.3 billion yen profit.
The announcement sent Gumi shares to a low of 1,282 yen, less than half of its listing price of 3,300 yen in an IPO lead-managed by Japanese brokerage Nomura.
The stock closed on Friday at 1,618 yen, down 4.4 percent on the day, giving the company a total market value of about 46 billion yen.
(Additional reporting by Yoshiyasu Shida and Hideyuki Sano; Editing by Kenneth Maxwell)
