Enad Global 7 announced the initiation of a business optimization plan at Piranha Games (Piranha) as part of the group's ongoing efforts to ensure that all business units operate in a financially sound manner. This initiative follows an updated forecast for Piranha’s latest project, "Clans," which has performed below projections. The cost-saving measures are expected to result in annual savings of approximately SEK 25.8 million.

The measures announced will ensure that Piranha continues to operate with a sound profitability while being able to ship new content (DLCs) according to plan. The annual cost savings for Piranha will be approximately SEK 25.8 million and is expected to result in a non-recurring restructuring reserve of approximately SEK 1.7 million. The optimization is expected to impact approximately 38 employees at Piranha and will be finalized by Q2.

“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 actions." said Ji Ham, CEO of EG7

The Toadman Studios wind down decision stems directly from the continued industry challenges and the studio's inability to secure new Work-for-Hire (WFH) contracts at a necessary pace. The wind down of Toadman is expected to result in a non-recurring restructuring reserve of approximately SEK 16.5 million. The effect of this decision will be fully seen in the second half of 2025, where an annual operating cost reduction of approximately SEK 46.5 million will be recognized. 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. This is also expected to have a positive effect on both pre-tax profits and operating cash flows meanwhile having a limited impact on the Group’s balance sheet.

"The Toadman Studios closure 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."

Management and the Board of EG7 remains optimistic and committed to continue to build a stronger, more sustainable business and appreciates the contributions of Toadman’s employees during their time with the Group.