Devsisters in trouble as Cookie Run runs out of steam

[DEVSISTERS]

Devsisters, publisher of the wildly popular Cookie Run game, is undertaking a slow motion restructuring of sorts as it was unable to achieve another home run and its bet on intellectual property (IP) did not pay off in time.

The Kosdaq-listed company is ditching two of its key projects, and according to online reports, denied by Devsisters, fired employees in an abrupt post-Lunar New Year round of layoffs.

Founded in 2007, Devsisters hit it big in 2013 with the release of Cookie Run, an endless running game involving a sentient gingerbread man. In 2021, its share price hit a high of 187,000 won ($151.78), up from under 10,000 won in 2020.

In May 2021, it jumped on the "IP" bandwagon, seeking to leverage up the Cookie Run concept into other products and services with the formation of two new subsidiaries. My Cookie Run would create a global service with webtoons, videos, merchandise and a community space for Cookie Run fans. Cookie Run Kids was created to provide entertainment for children with music, animation and toys based on Cookie Run concepts.

The company showcased original webtoons and merchandise for My Cookie Run last April.

A spokesperson for Devsisters confirmed on Tuesday that My Cookie Run and Cookie Run Kids have been shut down.

"Both projects were halted as we decided to focus primarily on expanding our IP business in other areas, such as licensing, animation and games, rather than on platforms,” the spokesperson said.

An anonymous Devsisters employee argued online that the company abruptly fired 40 workers on Monday and told them to leave, according to a post uploaded on Blind, an online forum, on Tuesday.

“About 40 workers had been working on the platform and related merchandise for the last two to three years,” read the post. “After the Lunar New Year holidays, the workers were laid off at 1 p.m. without any notice and sent home at 6 p.m.”

The company insists no one has been laid off.

“Workers each went through separate consultations and were relocated to other projects or departments,” the spokesperson said.

The company's stock price is down 67 percent from the peak and earnings have been dismal. Devsisters reported operating losses in the second and third quarters of 2022, while sales have plummeted.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]