Devsisters decided on unpaid management for its executives, including CEO Cho Gil-hyun. It will carry out a voluntary retirement program companywide and temporarily suspend new hiring. The move is seen as a high-intensity overhaul to respond to deteriorating earnings after recent new titles underperformed.
Devsisters said on the 11th that it will push a sweeping management overhaul to respond to the rapidly changing market environment and establish a foundation for sustainable growth and a solid financial structure. A company official said, "This overhaul is a measure to break through internal and external crises, including a marketwide slump due to fiercer content competition, rising difficulty in live service, underperformance of our new titles, and contraction of existing revenue scale."
The overhaul focuses on restoring corporate competitiveness and continuity through a portfolio reshuffle centered on profitability and growth, building a high-efficiency work system based on new technology, financial stabilization through thorough expense control, and an elite organization.
In particular, the management will pursue accountable management with the aim of swiftly stabilizing the corporations. Devsisters decided on unpaid management for the full amount of wages of CEO Cho Gil-hyun and co-chairs of the board Lee Ji-hoon and Kim Jong-heun until management stability is secured. Key executives will also cut their compensation by 50%.
In addition, it will establish a "expense management TF (task force)" under the CEO to optimize companywide resource allocation, continuously review execution expenses, and enforce strict controls.
As Cookie Run IP-based mobile action game "Cookie Run: OvenSmash," which Devsisters released in Mar., delivered results that fell short of expectations, the stock underperformed and calls for executive accountability spread quickly among minority shareholders, leading the company to take extraordinary measures.
Furthermore, it will put profitability and growth first and conduct a full review of its game and intellectual property (IP) business portfolio. Devsisters has been criticized for relying excessively on the Cookie Run IP. In response, the company plans to adjust its investment strategy through "selection and concentration," focus resources on core titles, and raise the chances of success.
It plans to redefine revenue criteria for each project and run expense and operating systems aligned to those standards to secure stability. For Cookie Run, a core asset, it will concentrate investment on the core game lineup and IPs with tangible results, and subject new projects to strict business feasibility reviews.
It will also push a structural overhaul toward an ultra-efficient, lightweight organization centered on core talent. It will fully introduce new technologies such as AI across all work areas except the IP's unique creative domain, and temporarily freeze new hiring outside essential roles. A companywide voluntary retirement program will also be implemented.
A Devsisters official said, "Through this management overhaul, we will streamline the game development and operation methods that are the backbone of the company, and establish a foundation for sustainable growth by securing financial stability."