Moon Active Cuts 110 Jobs in Strategic Workforce Reduction

Moon Active, the Israeli mobile gaming company behind popular titles like Coin Master, laid off 110 employees on January 27, 2026, representing 5% of its total workforce. The workforce reduction affects the company's operations across multiple departments as the mobile gaming giant adjusts to shifting market dynamics and refocuses its strategic priorities.

The layoffs come amid broader challenges facing the mobile gaming industry, including increased user acquisition costs, platform policy changes, and heightened competition for player attention. Moon Active's decision reflects the company's efforts to streamline operations and maintain profitability in an increasingly competitive market environment.

Context of the Decision

The workforce reduction stems from Moon Active's strategic restructuring initiative aimed at optimizing operational efficiency and adapting to evolving market conditions. The mobile gaming sector has experienced significant headwinds following the post-pandemic normalization of user behavior, with many players returning to pre-2020 gaming habits and spending patterns.

Rising user acquisition costs on major platforms like Facebook and Google have pressured profit margins across the industry. Additionally, Apple's iOS privacy changes and Google's planned cookie deprecation have made targeted advertising more challenging and expensive for mobile game publishers. Moon Active's decision to reduce headcount appears designed to maintain competitive positioning while preserving resources for core product development and marketing investments.

Impact on Operations

The layoffs primarily affected support functions and non-core development teams, according to industry sources familiar with the restructuring. Engineering, product development, and live operations teams for Coin Master and other key titles remained largely intact, suggesting Moon Active prioritized protecting revenue-generating activities.

The company's Tel Aviv headquarters bore the majority of the workforce reduction, though some positions at international offices were also eliminated. Marketing and business development departments experienced notable cuts as Moon Active consolidates its user acquisition strategies and focuses on organic growth initiatives.

Customer support and quality assurance functions were streamlined through automation and process optimization, reflecting broader industry trends toward AI-powered customer service solutions and automated testing frameworks.

Company Financial Background

Moon Active has maintained strong financial performance despite industry challenges, with Coin Master continuing to generate substantial revenue through its slot machine-style gameplay and social features. The company achieved unicorn status in 2021 with a valuation exceeding $1 billion, supported by consistent monthly revenue figures surpassing $100 million.

The company's diversification efforts beyond Coin Master have shown mixed results, with newer titles struggling to achieve similar scale and monetization success. This performance gap has prompted management to concentrate resources on proven revenue drivers while reducing investment in experimental projects.

Moon Active's private equity backing provides financial stability during the restructuring period, allowing the company to make strategic decisions without immediate pressure from public market expectations. The workforce reduction enables the company to extend its operational runway while maintaining investment in core growth areas.

Industry Outlook

Moon Active's layoffs align with broader workforce reductions across the mobile gaming sector throughout 2025 and early 2026. Major publishers including King Digital Entertainment, Supercell, and Zynga have implemented similar cost-cutting measures as the industry adapts to normalized growth rates following the pandemic boom.

The casual gaming segment, where Moon Active operates, faces particular pressure from increased competition and user acquisition challenges. Social casino games like Coin Master must navigate evolving regulatory landscapes while maintaining engagement among increasingly sophisticated mobile users.

Industry analysts expect continued consolidation and efficiency improvements across mobile gaming companies as the sector matures. Companies with strong intellectual property portfolios and established user bases, like Moon Active, are better positioned to weather current market conditions compared to smaller developers relying on venture funding.

Conclusion

Moon Active's workforce reduction represents a calculated response to industry headwinds rather than financial distress. The company's focus on preserving core development capabilities while optimizing support functions suggests confidence in its long-term strategic direction. As the mobile gaming industry continues evolving, Moon Active's ability to maintain Coin Master's market position while developing new revenue streams will determine its success in the post-restructuring era.