Angry Birds is the most successful paid mobile app ever, but growth of the franchise has not matched expectations.
In a post on the Rovio website, chief executive Mikael Hed described the cuts as "painful," saying: "It is never easy to consider changes like this."
The Finland-based company says its workforce will be reduced by a maximum of 130 people.
The company has expanded from game apps into toys, clothes and a TV series, while an animated movie is due in 2016.
Hed said the company will focus on three areas - games, media and consumer products.
By Ruchi Singh
reporter
Park Sae-jin
swatchsjp@ajunews.com
