As Its Dominance Wanes, Angry Birds Studio Cuts Staff

Rovio Entertainment, the Finland-founded entertainment studio that shot to global fame with its Angry Birds games, is preparing to cut its headcount by a maximum of 130 people.

This comes weeks after the corporation's chief executive, Mikael Hed, announced he would be stepping down from his role in January. Rovio emerged as a runaway success in 2009 after iPhone users were gripped by its breakthrough iOS game, but its latest financial report showed that annual profits have sunk by about 50 percent.

Hed, writing on the Rovio website, said that the company will now focus its efforts on three key businesses with the highest growth potential: games, media, and consumer products.

"Unfortunately, we also need to consider possible employee reductions of a maximum of 130 people in Finland," he added.

"It is never easy to consider changes like this, but it is better to do them sooner rather than later, when we are in a good place to reignite growth."

If as many as 130 people go, that would equate to a 16 percent workforce reduction.

Rovio expects that its Angry Birds film will be released in July 2016. By January, Hed will be succeeded by former Nokia executive Pekka Rantala.