Mad Catz Rocked by Resignations in Executive Leadership, Cuts Staff by 37% in Restructuring Efforts

By on February 9, 2016 at 2:40 pm
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UPDATE – And the hits just keep on coming. According to a report from Gamasutra, Mad Catz has laid off 37% of their staff in an effort to buoy the business.

These cuts will apparently save the company $5 million a year beginning in the first quarter of the 2017 fiscal calendar. Our original article follows below.

Just a day before releasing their third quarter earnings report, Mad Catz has announced a number of resignations from leadership positions. These include president and chief executive officer Darren Richardson, chairperson Thomas Brown, and senior vice president of business affairs Whitney Peterson. All vacancies have been filled internally.

“We recognize the tremendous value that Thomas, Darren and Whitney have brought to Mad Catz during their tenure and thank them for their many contributions throughout the years,” newly appointed CEO Karen McGinnis relayed in an official statement. “Looking ahead, we are confident that we have a talented leadership team in place that will enable us to steer the Company on a steady course in its operations and financial performance as we look to grow our business and reward our shareholders.”

While previously notorious for shoddy third-party controllers, Mad Catz turned the ship around in recent years thanks to their various competitive products. Many of those who joined the community in 2009 likely transitioned from pad to stick thanks to Mad Catz, and their presence at numerous fighting game events cannot be overstated.

This news comes less than a year after community and sponsorship manager Mark “MarkMan” Julio revealed that he will probably be leaving the company sometime before Evo 2016.

Mad Catz previously conveyed to investors that their financial stability hinged on the success of Rock Band 4, for which they designed numerous peripherals as well as helped distribute. While they enjoyed net sales of $38.9 million during the last fiscal quarter, the company still posted a net loss magnitudes greater than the same quarter in 2013 and 2014.

At this point, it’s hard to determine what this means for Mad Catz, let alone the fighting game community. While arcade sticks are readily available from other manufacturers, their support of players and tournaments alike has been a boon for the scene as a whole. We’ll be sure to keep you updated as more details surface.

Source: Mad Catz via Polygon, NeoGAF