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Thursday, 11 September 2008 06:28

Layoffs likely at NCsoft

Written by David Stellmack


Image

Due to formation of new Western subsidiary


Developer NCsoft has announced the formation of a new Western subsidiary that will be a consolidation of the European and U.S. organizations that will come to be known as NC West.

To be located in Seattle, the new NC West will be a combination of NC Interactive, NC Europe, NC Austin, and ArenaNet. The NC West team will have responsibility of both the American and European regions. Reports indicate that NC West will be led by Chris Chung, serving as CEO, and Jeff Strain, who will be the President of Product Development. David Reid will fill the President of Publishing position, while Patrick Wyatt will be in the CTO role. Additional leadership roles are expected to be filled by some European executives, although these moves have yet to be announced.

The bad news about the formation of NC West is that it is expected to lead to some layoffs. Some employees in Austin, Texas and Brighton U.K. are expected to get the axe. One of our reliable moles is suggesting that the layoffs at Brighton are expected to total about 50, and in Austin some 70 people are expected to be let go, as well.

NCsoft has suffered some tough sledding as late, with profits for the second fiscal quarter down about 42%, which is believed to have contributed to the consolidation of the studios into the announced NC West. While NCsoft continues to be confident for the future, it is obvious that an announced MMO that was in development at Austin has been put on ice.

Last modified on Thursday, 11 September 2008 08:10

David Stellmack

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