Mobile game maker Glu Mobile said Tuesday it is reducing headcount and operating expenses to cope with “the increasing economic headwinds facing our industry and and the softening in consumer demand,” according to the company’s chief executive, Greg Ballard, who also announced that he requested the company’s board of directors to reduce his salary by 25 percent as part of the cost-reduction efforts. He was paid about $300,000 in salary last year.
The company provided no number in connection with the layoffs. As of the end of its last fiscal year the company had 417 employees. It did say that it expects to incur restructuring charges in the fourth quarter of 2008 related to estimated severance costs of from $625,000 to $675,000. Substantially all of these charges will result in future cash expenditures, of which the Company believes approximately $230,000 will be paid in the fourth quarter of 2008 and the remainder will be paid in the first quarter of 2009. Additionally, the Company expects to record a pre-tax, non-cash facility closure charge in the range of approximately $700,000 to $800,000 in the fourth quarter of 2008.