Capcom's European branch is to lay off over half its workforce following restructuring, according to MCV who "understands more than half of the European arm faces redundancy, with a number of jobs set to merge."

Both MCV and GamesIndustry International confirmed with Capcom that its European arm is facing a restructuring process similar to that endured by the American team in the summer. The Capcom US layoffs saw several employees lose their jobs, including former senior VP of planning and business development Christian Svensson.

Capcom provided the following statement: "Following a restructure at its US operation, Capcom's European organization is currently evaluating its structure to ensure it is in the best position to take advantage of the changing market conditions the industry is facing."

It's unknown how many employees are based at Capcom's European offices, although Capcom reported a global employee count of 2,476 as of March 2013.

MCV's report follows Capcom announcing a special loss of $73 million earlier this year due to game cancellations, some of the blame landing at the foot of overseas teams apparently providing poorer quality due to "excessive" outsourcing. Capcom said it wants marketing and development divisions to be better in sync overseas, its western teams suffering from "insufficient coordination."

This article was originally published on Joystiq.

Molyneux on Fable Legends: 'I'm a fan'