Metacore Confirms 159 Layoffs and Closes Two Studios

Business

08 June 2026 05:45

Merge Mansion developer Metacore has completed its restructuring process, confirming 159 layoffs in Finland alongside the full closure of its operations in Germany and Sweden. The cuts are substantial relative to the company's size, with Metacore having employed somewhere over 280 people, meaning the restructuring removes more than half of its workforce. The changes follow restructuring plans the studio announced last month, which it tied to the stagnation of its flagship title and a failure to get new games off the ground.

Why the Restructuring Happened

The studio said Merge Mansion, the merge-2 puzzle title it launched in 2020 and a game it is credited with pioneering the category around, has "plateaued over the past few years," while its more recent investments "have not succeeded in launching new games globally." Despite the plateau, Merge Mansion remains a sizeable business, with more than 60 million players and roughly $700 million in lifetime revenue, but competition in the merge-2 space has intensified every year since its debut. CEO Mika Tammenkoski summarised the problem as having "built an organisation with growth ambitions that have not materialised as expected," leaving the company carrying headcount its pipeline could no longer justify.

The Supercell Acquisition

Running alongside the cuts is Supercell's acquisition of Metacore, which folds Merge Mansion into the Clash of Clans maker's live games portfolio next to titles like Hay Day. The move closes a long loop between the two companies, as Supercell had been Metacore's largest shareholder since 2020 and reportedly invested around €180 million in the business over that period. Supercell CEO Ilkka Paananen praised Metacore's team for creating the merge-2 category and said he believes "Merge Mansion's best days are still ahead," pointing to Supercell's experience scaling live games. The deal also fits Supercell's recently cautious stance on mobile, having publicly described launching new hits as extremely difficult and shut down Squad Busters even after it passed 75 million downloads.

Support for Affected Staff

Tammenkoski confirmed the change negotiations had concluded and the results were communicated to employees earlier in the week, calling them "really difficult and painful decisions" and acknowledging the impact on both staff and a wider industry that "has not had it easy." The studio said affected employees will receive a support package that includes severance, the option to keep their work devices, extended occupational healthcare and wellbeing services, and a range of transition measures to help them find new roles. Tammenkoski added that the company is doing its best to support those leaving, saying he believes "any company would be lucky to have them."

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Metacore Confirms 159 Layoffs and Closes Two Studios

Business

08 June 2026 05:45

Tags: Metacore

Merge Mansion developer Metacore has completed its restructuring process, confirming 159 layoffs in Finland alongside the full closure of its operations in Germany and Sweden. The cuts are substantial relative to the company's size, with Metacore having employed somewhere over 280 people, meaning the restructuring removes more than half of its workforce. The changes follow restructuring plans the studio announced last month, which it tied to the stagnation of its flagship title and a failure to get new games off the ground.

Why the Restructuring Happened

The studio said Merge Mansion, the merge-2 puzzle title it launched in 2020 and a game it is credited with pioneering the category around, has "plateaued over the past few years," while its more recent investments "have not succeeded in launching new games globally." Despite the plateau, Merge Mansion remains a sizeable business, with more than 60 million players and roughly $700 million in lifetime revenue, but competition in the merge-2 space has intensified every year since its debut. CEO Mika Tammenkoski summarised the problem as having "built an organisation with growth ambitions that have not materialised as expected," leaving the company carrying headcount its pipeline could no longer justify.

The Supercell Acquisition

Running alongside the cuts is Supercell's acquisition of Metacore, which folds Merge Mansion into the Clash of Clans maker's live games portfolio next to titles like Hay Day. The move closes a long loop between the two companies, as Supercell had been Metacore's largest shareholder since 2020 and reportedly invested around €180 million in the business over that period. Supercell CEO Ilkka Paananen praised Metacore's team for creating the merge-2 category and said he believes "Merge Mansion's best days are still ahead," pointing to Supercell's experience scaling live games. The deal also fits Supercell's recently cautious stance on mobile, having publicly described launching new hits as extremely difficult and shut down Squad Busters even after it passed 75 million downloads.

Support for Affected Staff

Tammenkoski confirmed the change negotiations had concluded and the results were communicated to employees earlier in the week, calling them "really difficult and painful decisions" and acknowledging the impact on both staff and a wider industry that "has not had it easy." The studio said affected employees will receive a support package that includes severance, the option to keep their work devices, extended occupational healthcare and wellbeing services, and a range of transition measures to help them find new roles. Tammenkoski added that the company is doing its best to support those leaving, saying he believes "any company would be lucky to have them."

More:The Huns Part Ways With xerolte

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