GamesBeat

Brazilian social gaming firm Vostu lays off staff

Brazilian social gaming firm Vostu confirmed that it has laid off an unspecified number of employees.

The company confirmed the layoffs but declined to say how many people had been let go or why the layoffs were necessary. It shows that even in fast-growing emerging markets, companies have to grow carefully or reset their strategies as the market changes.

In a statement, a Vostu spokesman said, “Vostu grew a significant amount in the last 18 months and is constantly focused on improving efficiency for future growth which includes select and strategic hiring. We are consolidating our game design and development at our new headquarters in Buenos Aires.”

The company will continue to have offices in New York and Sao Paulo, Brazil. Vostu has raised $46 million to date from Intel Capital, Accel Partners, General Catalyst, and Tiger Technology Global Management.

The firm was founded in 2007 by chief executive Daniel Kafie, Mario Schlosser, and Joshua Kushner. It grew up to be one of the largest social gaming companies in South America.

The company made casual social games and was sued in June 2011 by Zynga, which accused Vostu of outright copying Zynga’s games such as FarmVille. Vostu settled the case in December and made a monetary payment to Zynga. It also changed four of its games. Vostu’s traffic on Facebook grew in 2011.

Vostu has a couple of new games coming out soon. It has also made a foray into mobile games.


Screen Shot 2014-03-25 at 2.00.11 PMGamesBeat 2014 — VentureBeat’s sixth annual event on disruption in the video game market — is coming up on Sept 15-16 in San Francisco. Purchase one of the first 50 tickets and save $400!

GamesBeat is your source for gaming news and reviews. But it's also home to the best articles from gamers, developers, and other folks outside of the traditional press. Register or log in to join our community of writers. You can even make a few bucks publishing stories here! Learn more.

You are now an esteemed member of the GamesBeat community. That means you can comment on stories or post your own to GB Unfiltered (look for the "New Post" link by mousing over your name in the red bar up top). But first, why don't you fill out your via your ?

About GamesBeat