The Finnish company has expanded aggressively in recent years, using the success of the Angry Birds mobile game as a springboard for several animated series and numerous other brand extensions.
Announcing the job losses Rovio CEO Pekka Rantala said the company had overstretched and will now refocus on its core business areas of games, media and consumer products.
The company said the staff cuts, amounting to almost 40% of its workforce, will come from across the organisation with the exception of the team in North America that is working on the Angry Birds movie.
Rantala said: “This is personally a difficult decision. However, it is certain that a leaner and more agile Rovio is absolutely necessary to move forward and take the company to new successes in the future. We will work with and support all our employees through this period of change.”
He added: “Rovio’s growth and eagerness to explore new business opportunities over the past few years has been exceptional. As a result, we did too many things. In our current financial condition we must now put focus on where we are at our best: in creating magnificent gaming experiences, in producing an amazing animation movie and in delighting our fans with great products.”