Subject: Decision concerning alignment of the scale and size of the team with the requirements of ongoing projects and the CD PROJEKT Group strategy
Legal basis: Art. 17 section 1 of MAR – inside information
The Management Board of CD PROJEKT S.A. with a registered seat in Warsaw (“the Company”) hereby announces that it has reached a decision concerning alignment of the scale and size of the Company team with the Company’s operating requirements, projects and publishing plans in the framework of the CD PROJEKT Group strategy (please refer to CR no. 37/2022).
As a result of the aforementioned decision, a staff reduction will be carried out, affecting approximately 9% of the CD PROJEKT RED workforce, including development, publishing and back-office teams. The process is expected to conclude in the first quarter of 2024.
The decision is related to the continuing transformation as part of which the CD PROJEKT RED studio has managed to – among others – incorporate Agile methodologies, while reshaping development processes and optimizing working arrangements. This change in approach, along with efforts to build more effective project teams, represents a continuation of an ongoing transformation which the Company regards as key to making top-quality games, published on schedule and developed without undue crunch.
The Company also wishes to announce that the estimated value of provision for costs related to dissolution of contracts with personnel (including the costs of severance payments) is approximately 4.5 million PLN. This provision will burden the financial results of the CD PROJEKT Group in the third quarter of 2023.
This English language translation has been prepared solely for the convenience of English speaking readers. Despite all the efforts devoted to this translation, certain discrepancies, omissions or approximations may exist. In case of any differences between the Polish and the English versions, the Polish version shall prevail. CD PROJEKT, its representatives and employees decline all responsibility in this regard.