Bad news for the developers of Guild Wars 2: ArenaNet layoffs are coming according to a new report. No specific numbers were stated in the early announcements, but Kotaku reports that a “significant number of people” are going to be let go from the company.
ArenaNet is facing issues with declining revenue from their live game businesses like Guild Wars 2. This issue is being further compounded by development delays and overall operating costs for employees in the West. The most recent release from ArenaNet is 2017’s Path of Fire expansion for Guild Wars 2; the lack of new releases has certainly not helped the company’s financial situation. While the company is in no immediate danger of closure, the current situation is financially unsustainable. As a result, ArenaNet employees will be laid off. The company is also going to face some restructuring as they seek to streamline their operations and turn things around.
“Our live game business revenue is declining as our franchises age, delays in development on PC and mobile have created further drains against our revenue projects, while our operating costs in the west have increased.”
“Where we are is not sustainable, and is not going to set us up for future success.” -Songyee Yoon, CEO of ArenaNet’s parent company NCSoft West
A meeting between company executives and employees regarding the ArenaNet layoffs has already taken place. Part of the upcoming changes to cut costs will include a merging of ArenaNet and NCSoft’s publishing divisions, cutting down redundancies across both companies.
Employees affected by the ArenaNet layoffs will reportedly receive two months pay as severance alongside bonus time based on how long they’ve been with the company. There is not yet any word on how many of the 400 people employed by ArenaNet will be affected by these layoffs.
What do you think of the ArenaNet layoffs? Where do you think the employees will be heading next? Let us know in the comments below!