205 at Gree apply for voluntary exit

Kyodo

Gree Inc. said 205 employees have applied for voluntary retirement, about as many as expected, after the major social gaming company offered the plan last month as part of restructuring efforts.

The workers, roughly 12 percent of its unconsolidated workforce, will leave the company on Nov. 30, Gree said Tuesday.

While Gree is expected to post an extraordinary charge of about ¥600 million for the retirement program, its payroll costs will be reduced by around ¥1 billion for the seven-month period through next June.

The early retirement program was prompted by sluggish performance in the face of heightened competition with other game companies.

Gree recorded a consolidated net profit of ¥47.9 billion for the year that ended in June 2012, more than double the previous year’s result, with success of games such as “Tanken Doriland.”

However, for the past year to June, its profit dropped 53.1 percent without any major hit titles.