GDANSK, April 17 (Reuters) - Ten Square Games said on Monday it plans to cut its workforce by 25%, or about 120 people, by the end of April and suspend two major projects, blaming a challenging economy and an unstable mobile games market.

The Polish company said it will stop development of its 'Undead Clash' and 'Fishing Masters' projects and book a 14.3 million zlotys ($3.39 million) for the former and an 11.4 million zloty write-down for the latter.

"We have decided to end work on two projects - Undead Clash and Fishing Masters - and to significantly reduce employment in areas outside the company's main products. This will allow us to focus Ten Square Games' resources and energy on the development of the main titles - Fishing Clash and Hunting Clash - in the coming months, and prepare for the further scaling of Wings of Heroes," CEO Maciej Zuzalek said in a statement.

The company will give a final figure for the write-downs in its first-half report, after calculating the amount of severance pay for lay offs. The games write-downs will be included in the company's second-quarter results. ($1 = 4.2200 zlotys) (Reporting by Maria Gieldon, Editing by Louise Heavens and Susan Fenton)