Layoffs are an unfortunate reality in the gaming industry. Of course, it’s important to talk about them almost as much as it is for everything else related to gaming. The industry is definitely going through a very complicated rough patch. Furthermore, the Guild Wars 2 developer ArenaNet is facing their own layoff spree.
ArenaNet Will Reportedly Have Massive Layoffs
A recent report by Kotaku’s Jason Schreier reveals the plans for ArenaNet to have big layoffs. However, ArenaNet did not give out exact numbers, so it’s not clear how many people will be let go. According to Songye Yoon, the main reason behind this layoff spree is due to the fact that Guild Wars 2 is no longer sustainable.
“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,” she wrote. “Where we are is not sustainable, and is not going to set us up for future success.”
Yoon is also looking to cut costs across the organization. Yes, it might sound very familiar for a lot of gamers who have been keeping up with the industry. Furthermore, this news is coming off the heels of a huge cost-cutting effort over at NCSoft. In fact, mobile studio Iron Tiger is also expected to suffer massive layoffs.
ArenaNet told employees it will be giving out severance of two months to anyone losing their jobs, as well as bonus time based on tenure with the company. However, the tension is at an all-time high as the employees await to hear who is being cut.
What do you think about ArenaNet’s massive layoff plans? Do you think Guild Wars 2 is still sustainable? Do you play Guild Wars 2? Let us know your thoughts at the VGR Forums and stay tuned for more news and updates.