I’m honestly quite surprised Gamefly is still kicking, but then again this is coming from a guy who still rents his games at a Family Video so I guess I shouldn’t talk.

According to Gameindustry International, the company has laid off 15% of their work force, stating that that the company could operate much more effectively with a smaller team.

“We recently made the difficult decision to restructure our organization to better align ourselves to the existing console and digital games markets,” Dave Hodess, CEO at GameFly, said in a prepared statement. “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.

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. We would like to thank all of our employees for their continued dedication and hard work. For those that are leaving us this week, we sincerely appreciate all your efforts over the years.”

I don’t know how much longer Gamefly can stay a float. While they have been building up its own digital service since last year, they still have to compete with not only Steam but Origin as well.

Source: Game Industry