Finnish company Rovio Entertainment Ltd, the maker of the popular game "Angry Birds," announced on Thursday that it will be cutting 130 jobs, according to ABC News.

The layoff happens as industry reports suggest a steep decline in the game's popularity. Whereas "Angry Birds" had had 263 million active players by the end of 2012, the number has decreased to 200 million as of September this year, The Guardian recently reported.

"We have been building our team on assumptions of faster growth than have materialized. As a result, we announced today that we plan to simplify our organization around our three key businesses with the highest growth potential: games, media and consumer products," Rovio CEO Mikhael Hed said in a statement.

"Unfortunately, we also need to consider possible employee reductions of a maximum of 130 people in Finland," he continued.

The number of positions to be cut comprises 16% of its workforce.

In April, the Espoo, Finland-based company announced that its profits had dropped by 50% between 2012 and 2013. Merchandising, however, had fallen by only two percent.

The drop in profit can be attributed to the failure of "Angry Birds" spinoffs to match the popularity of the original game, says The Mirror. "Bad Piggies," "Angry Birds Epic" and "Angry Birds Go!" all haven't attracted a following as huge as what Angry Birds has had, it says.

In addition, the "freemium" model that Rovio has adopted and the move to give away the games in hopes of profiting through in-app purchases didn't yield the expected results.

Technology analyst Tero Kuittinen of Frank N. Magid Associates backs this theory.

"Rovio is about to become more and more a firm driven by franchising products, because the game sales are probably shrinking. Their new entries which tried out different types of 'Angry Birds' - 'Etik' and 'Angry Birds Stella' have flopped," Kuittinen told the AFP.