Star Stable cuts up to 40 jobs as $6m mobile IAP base exposes headcount bloat
Summary
Star Stable Entertainment cuts 20% of staff under interim CEO James Nicholas
Website lists 130 staff, LinkedIn shows 180+, putting the cut at 26 to 40 people
Flagship Star Stable Online runs at $500k a month, $23m in IAPs since 2022, on 12m downloads
"By reducing our operating costs and refocusing our resources, we are putting Star Stable in the best possible position to adapt, grow, and deliver memorable experiences for players today and for years to come"
01
Headcount discrepancy understated the studio's real cost base
Website claims 130 staff, LinkedIn shows over 180, a spread of roughly 50 people
A 20% cut removes 40 roles against LinkedIn, only 26 against the website figure
Nicholas asked other studios to hire departing staff, confirming no redeployment plan
02
A $6m IAP base cannot justify a 130-180 person studio
Star Stable Online generated $23m in IAPs since 2022 across 12m downloads, per AppMagic
That converts to a $500k monthly run rate, roughly $6m a year
The revenue curve is mature and stable, not collapsing
Sister title Star Stable Horses added just $2.7m in IAPs since its 2017 launch
03
Nordisk games treats the cut as portfolio maintenance
Nordisk entered with an $18m minority stake in 2018, took majority control in 2021
The cuts land eight years into that investment, after the studio's 15th anniversary
Neither Nordisk nor Nicholas disclosed revenue or margin targets
What this means
For Investors & VC: An interim CEO cutting 20% flags unresolved leadership - a Nordisk governance diligence item.
For Publishers & Developers: Nicholas' public hiring plea signals experienced live-service talent now on the market.
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