Guild Wars and Guild Wars 2 developer ArenaNet is cutting an unspecified number of jobs. The company confirmed the layoffs and said it has recently cancelled a project. ArenaNet is restructuring now that it is no longer working on that new game.
The studio also confirmed that the restructuring extends to its parent company, South Korean publisher NCSoft. But the Guild Wars games should continue operating as normal. Kotaku first broke news of this report.
An ArenaNet spokesperson provided the following statement:
“We can confirm that due to the cancellation of unannounced projects, ArenaNet will make staff reductions. This is part of a larger organizational restructuring within NCSoft in the west, but the Guild Wars and Guild Wars 2 game services will not be affected, nor is any upcoming game content canceled.”
ArenaNet could not say how many people it expects to lay off, but the process is beginning now. According to employee accounts within ArenaNet, the situation sounds materially different from the disastrous layoffs at Telltale Games.
“ArenaNet has been very, very transparent with us today in meetings, which is something I appreciate very much,” lead designer Jennifer Scheurle said on Twitter. “For all of you asking if I still have a job: I don’t know. It will need a couple more days to know the exact outcome for many of us, so giving space is helpful.”
The developer did not have anything to say about the cancelled projects, which it has never announced.
Cutting costs and reorganizing
NCSoft is looking to cut costs across the board, according to Kotaku.
NCSoft West chief executive officer Songyee Yoon said the following in a message sent to employees:
“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.”
“The restructuring, cost-cutting, and strategic realignments are all being done to secure our tomorrow and to provide the foundation that will allow us to grow and acquire.”
Kotaku is also reporting that anyone losing their job is getting two months severance pay.