CD Projekt

Report Publication Announcement • Jul 26, 2023

Current report no. 35/2023

Legal basis: Art. 17 section 1 of MAR - inside information

Subject: Decision concerning alignment of the scale and size of the teamwith the requirements of ongoing projects and the CD PROJEKT Groupstrategy

The Management Board of CD PROJEKT S.A. with a registered seat in Warsaw("the Company") hereby announces that it has reached a decisionconcerning alignment of the scale and size of the Company team with theCompany's operating requirements, projects and publishing plans in theframework of the CD PROJEKT Group strategy (please refer to CR no.37/2022).

As a result of the aforementioned decision, a staff reduction will becarried out, affecting approximately 9% of the CD PROJEKT RED workforce,including development, publishing and back-office teams. The process isexpected to conclude in the first quarter of 2024.

The decision is related to the continuing transformation as part ofwhich the CD PROJEKT RED studio has managed to - among others -incorporate Agile methodologies, while reshaping development processesand optimizing working arrangements. This change in approach, along withefforts to build more effective project teams, represents a continuationof an ongoing transformation which the Company regards as key to makingtop-quality games, published on schedule and developed without unduecrunch.

The Company also wishes to announce that the estimated value ofprovision for costs related to dissolution of contracts with personnel(including the costs of severance payments) is approximately 4.5 millionPLN. This provision will burden the financial results of the CD PROJEKTGroup in the third quarter of 2023.

Disclaimer

This English language translation has been prepared solely for theconvenience of English speaking readers. Despite all the efforts devotedto this translation, certain discrepancies, omissions or approximationsmay exist. In case of any differences between the Polish and the Englishversions, the Polish version shall prevail. CD PROJEKT, itsrepresentatives and employees decline all responsibility in this regard.