Paizo Announces Layoffs and Organized Play Changes Following Financial Struggles
Paizo has announced a series of cost-cutting measures, including layoffs and changes to its Organized Play programs, as the publisher continues to deal with the fallout from the bankruptcy of its former distributor, Diamond Comics.
In a statement released yesterday, Paizo President Jim Butler revealed that the company lost nearly $2 million last year after Diamond’s collapse left roughly $10 million worth of Paizo inventory tied up in ongoing legal disputes. The company also wrote off nearly $500,000 in additional sales connected to the bankruptcy.
While sales through Paizo’s website and hobby game stores have grown, Butler said they have not been enough to offset losses in the book trade market.
As part of its restructuring efforts, Paizo will lay off 12 employees. The company noted that the process was developed in cooperation with the United Paizo Workers union and includes severance packages and 18-month recall rights for affected staff.
The announcement also includes significant changes to Pathfinder Society and Starfinder Society. Beginning after October, Paizo will reduce official Organized Play support to one new scenario per month for each game line. The company plans to expand opportunities for community-created content through the ORC License and the Pathfinder Infinite and Starfinder Infinite programs.
Despite the challenges, Paizo remains optimistic about the future. The company has partnered with Independent Publishers Group to rebuild its book trade presence and plans to launch a direct-to-retailer ordering program through its new online store.
“This is a hard update,” Butler wrote, “but you deserve clarity.” He reiterated that the company’s goal is to stabilize operations now so that Pathfinder and Starfinder can continue to grow in the years ahead.
