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ArenaNet, the studio behind popular online games Guild Wars and Guild Wars 2, informed today's employees that he was considering large layoffs, according to one person there. Although ArenaNet has not given the exact figures, and they may not have finalized yet, rumors circulating around the studio indicate that a significant number of people will be returned.
Songyee Yoon, CEO of Korean publisher NCSoft, owner of ArenaNet, sent an email to employees this afternoon with the news. "The revenue from our live gaming business is decreasing as our franchises get older, delays in PC and mobile development have created additional drains against our revenue plans, while our operating costs in the United States are increasing. West have increased, "she wrote. "Where we are is not sustainable, and will not prepare us for future success."
Yoon added that the company plans to "reduce costs within the organization" and restructure in all areas by merging the publishing divisions of ArenaNet and NCSoft. "Restructuring, cost reduction and strategic realignments are all about securing our future and providing the foundation that will allow us to grow and acquire," she wrote.
Later this afternoon, Mike O'Brien, CEO of ArenaNet, plans to meet with staff to discuss layoffs.
About 400 people work at ArenaNet. In recent years, they have worked on a number of non-advertised projects, according to someone familiar with the company's activities. However, said this person, the slow progress in development, combined with the lack of new games in 2018 and 2019, has resulted in financial tightening. The latest version of ArenaNet, the Way of Fire expansion for Guild Wars 2, launched in September 2017.
This news follows widespread cost-cutting measures at NCSoft. Last September, NCSoft closed Wild Star developer Carbine Studios, and earlier this year he began to reduce the staff of the Iron Tiger mobile studio. In its call on financial results earlier this week, NCSoft reported an annual decline in personal computer revenues.
When reached by Kotaku Earlier in the day, a NCSoft representative declined to comment.
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