GameFly lays off 15 percent of workforce

Rent-by-mail service GameFly has laid off 15 percent of its employees, the company revealed this week. Anonymous sources who spoke with Joystiq claimed that 35 employees were let go in total.

"We studied our business and determined that we could operate with a smaller team while continuing to provide the same high level of service to our customers," GameFly CEO Dave Hodess said in a statement. "Aside from a greater focus in our software development efforts, we're not making any significant changes in our console subscription or digital download businesses. GameFly remains profitable with a strong balance sheet."

The company acquired Direct2Drive in 2011, and has since rebranded its downloadable marketplace into a major subset of GameFly services.