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Jagex 'scales back' Transformers Universe team with layoffs
The development history of Transformers Universe has not been a smooth one, with the game going silent for long stretches of time and having changed focus once already. The latest news from the studio is not good, either; Jagex has laid off 13 employees from the game's development team. The reports indicate that there are internal concerns being raised about the title's overall quality, as the studio is under pressure from Hasbro to release before the end of the year. According to the developer, the game is in no danger and is progressing marvelously, but sources within the company claim that its position is "precarious," citing the switch to unfamiliar technology and the need for faster development. Jagex stressed that the changes in staff should not adversely impact the title, which was originally tracked for a release back in 2012. Our best wishes go out to those designers personally affected by these layoffs.
EA suffers additional layoffs
Citing a reorganization to focus on new technologies and mobile development, EA announced that it has let another round of its employees go. No firm numbers or estimates on how many were fired have been officially released, however. The publisher released the following statement on its blog: In recent weeks, EA has aligned all elements of its organizational structure behind priorities in new technologies and mobile. This has led to some difficult decisions to reduce the workforce in some locations. We are extremely grateful for the contributions made by each of our employees – those that are leaving EA will be missed by their colleagues and friends. These are hard but essential changes as we focus on delivering great games and showing players around the world why to spend their time with us. A Gamasutra source said that the EA Partners publishing label has been abolished in the reorganization, although the games it was handling are still in the works.
Disney shutters LucasArts
Following Disney's acquisition of Star Wars and its related companies and properties, gaming fans have wondered what might happen to developer LucasArts. Out of all of the possible scenarios, the worst has happened: Disney has stopped development in the studio and laid off its employees. From the official Disney statement: "After evaluating our position in the games market, we've decided to shift LucasArts from an internal development to a licensing model, minimizing the company's risk while achieving a broader portfolio of quality Star Wars games. As a result of this change, we've had layoffs across the organization. We are incredibly appreciative and proud of the talented teams who have been developing our new titles." Massively conveys its sympathies to those affected by the decision. There's no word yet how this might affect Star Wars: The Old Republic, if at all.
NCsoft West confirms layoffs
NCsoft has gone through some "restructuring," leading to the termination of several employee and contract positions. Aion Community Manager Felicia Johnson stated on Twitter that she no longer works for NCsoft. When asked for comment and confirmation, NCsoft PR responded with the following statement: "In an effort to put a greater focus on the success of the Western-developed games from NCSOFT, and the long-term services MMOs require, the company announced further restructuring allowing for focused support from the studio's internal publishing services. As a result of the realignment, several employees and contract positions were affected. This was a very tough decision to make and wish the best for all NCSOFT employees in their next ventures." Our best wishes, as ever, go out to those affected. [Thanks to everyone who sent this in.]
MMO devs most in danger of layoffs, study claims
In an attempt to answer the question of whether the games industry is dying or not, Twisted Pixel Lead Developer Dan Teasdale conducted research into all of the layoffs of 2012 and believes he has found that, among other things, MMO developers had the highest risk of being fired. "Looking at the the raw number of people affected, MMO teams laid off more developers than console teams," Teasdale argues. He notes that 38% of video game industry layoffs hit MMO studios, although only 26% of MMO studios did any firing. Layoffs in Boston and Austin, including the closure of 38 Studios, accounted for a third of all industry layoffs, which could look good or bad depending on the total number of studios in those two cities relative to the rest of the industry (info hard to come by and not included in the study). One upshot of the report was that MMO studios tended to lay off fewer people when firings happened in comparison to social, mobile, and console studios. "While this probably isn't a surprise, it's a clear indication that it's way harder to survive as a social or MMO developer than a console developer," he concludes. However, the analysis does not break down the types of employees laid off, such as designers vs. support, community, and temporary contractors, roles common in the MMO industry.
Trion Worlds goes through 'workforce reduction'
It's a gloomy day for Trion Worlds, as word has come down that the independent developer is handing out pink slips to some of its staff. The studio confirmed the layoffs in an official statement: As a response to market conditions, product timelines and the natural evolution of our company, we have made some organizational changes, which include a workforce reduction. This was a difficult decision and we wish the best for those affected by these changes. At Trion, we remain focused on delivering top quality online game experiences, and are committed to supporting RIFT and launching our highly anticipated new titles Defiance, Warface, and End of Nations in 2013. Twitter was ablaze over the subject, saying that as many as 30 people were let go. One staff member wrote, "I managed to survive this time. Lots of REALLY good people got let go though." Another indicated which jobs were lost: "Not a good day. If anyone has a lead for a Sr. EQ or Assistant Lead QA job, please let me know." Trion recently brought End of Nations in-house after Petroglyph suffered its own round of layoffs. [Source: Trion Worlds press statement]
AMD shutters key Linux support lab in Germany as part of company-wide layoffs
The pain from recently announced job cuts by AMD could ripple out to the Linux community, as the chipmaker has shut down a small but important Linux OS research facility in Dresden, Germany. The center housed 25 employees who helped port AMD technology like PowerNow over to new Linux distros, and according to The H, many engineers who submitted major processor and chipset revisions for the OS would be pink slipped. The closure won't affect GPU and APU development, according to the source, but it's not yet known exactly who will pick up the slack from the former Dresden team -- though the research center in Austin Texas is reported to be a likely bet.
TERA Producer Chris Hager leaves En Masse
TERA Producer Chris Hager has left the fields of action combat and big-ass monsters, according to the studio. A PR rep released the following statement to Massively: "Yes, we can confirm Chris Hager is no longer with En Masse Entertainment. We wish him the best of luck in his future endeavors." Bluehole Studios' Harns Kim first made mention of Hager's departure on his Twitter feed. It is unclear whether Hager left of his own volition or was let go. Prior to working for En Masse, Hager was with NCsoft, developing titles like Guild Wars, Lineage II, and Aion. [Thanks to Maniac for the tip!]
Rumor: Zynga shedding staff in Boston, Austin, Chicago [Update: Letter from CEO]
Twitter is on fire with messages that Zynga offices in Boston, Austin and Chicago are closing down. We have contacted Zynga and its employees for clarification.An employee at Zynga Austin tells Joystiq, "So what I know as of now that The Ville and Bingo teams were cut. I don't know anything about Chicago at the moment." Zynga Austin is responsible for The Ville, Zynga Bingo and Slots, meaning this cut leaves just the Slots team. There are about 70 people left at Zynga Austin, the employee says.Zynga Boston General Manager Fareed Mosavat is tweeting out job offers in the city, writing, "The outpouring of support for us has been incredible. Love this Boston scene."Zynga Boston is behind Facebook game Adventure World, and comprises employees from Zynga's acquisition of Conduit Labs in 2010. In March 2011 it acquired Floodgate Entertainment, and by September 2011 Zynga Boston had 35 employees, some recruited from MMO developer Turbine.Update: Zynga CEO Mark Pincus sent out a letter to employees that confirms the closure of its Boston studio and a significant reduction at its Austin studio, resulting in a loss of 5 percent of its full-time employees, among other changes. Read the letter here.
AMD could slash up to 30 percent of its workforce according to reports
AllThingsD and CNET are reporting that 30 percent of AMD's workforce could be laid off, though one of several unnamed sources notes the cuts could be as low as 10 percent. If these reports hold true, this would be the second round of layoffs for AMD within a year's time. The reductions will reportedly affect the firm's engineering and sales employees, and may be serious enough to cause a paring back of product lines. The silicon giant could potentially reveal its plans as early as next week, which would coincide with the announcement of its third quarter financial results. With the company expecting a ten percent revenue drop in Q3, it looks like the latest figures will continue the trend of less than ideal results.
OnLive was reportedly sold for roughly $5 million to venture capital firm
Even though weeks have passed since that well-documented OnLive kerfuffle took place, where unfortunate layoffs and the formation of a "new company" were at the forefront of it all, previously unknown details are still coming out of the woodwork. According to Mercury News, the once-promising cloud gaming outfit was purchased by a venture capital group for a mere $4.8 million, which appears to be a relatively small amount of cash for an outfit once valued upwards of $1.8 billion -- not to mention when compared to, say, rival Gaikai's $380 million sale to Sony. Still, this is said to have been due to the bad shape OnLive was in at the time, with the Palo Alto-based company reportedly owing more than $18 million in debt, leaving it with no choice but to take "the best that it could get."
Lexmark announces detailed restructuring plan: 1,700 layoffs, inkjet business to be nixed
It's always a sad day when news come in of hard-working folks losing their cherished jobs -- and, unfortunately, today's one of those dismal days. In a detailed press release, Lexmark's let it be known it'll be be undergoing a company-wide restructure, but with the main focus being the exiting of the outfit's inkjet hardware development and manufacturing -- which, in the end, should save the printer maker about $95 million per year once the plan has taken place. Naturally, this doesn't come without any repercussions, as Lexmark's announced these restructuring actions will see around 1,700 worldwide jobs be lost; 1,100 of which are manufacturing positions, and also include the closing of an inkjet supplies manufacturing plant in the Philippines. Needless to say, we can only hope Lexmark sees better days. For now, however, you can peruse over the company's official word in the presser located right past the break.
More OnLive management moves: Perlman out, as investor Lauder settles for Chairman
As the OnLive storm continues to ride itself out, details of who the winners and losers are (mainly losers) keep washing up on the shore. Today's casualty seems to be CEO Steve Perlman himself, who -- just days after the firm reinventing itself -- is "departing to work on his myriad of other projects." In his place the former COO, Charlie Jablonski, is temporarily taking the reins, as well as continuing his role as head of operations in the new organization. Finally, completing this wave of announcements, is the news that chief investor, Gary lauder, will officially take the title of Chairman. So, as the new incarnation settles into its new structure, we'll just have to sit tight, waiting to see what the next chapter in the OnLive story is.
Funcom layoffs confirmed as temporary [Updated]
Apparently having suffered a mediocre launch with The Secret World and a severe dip in its stock value, Funcom has announced temporary layoffs to its staff. The layoffs are part of a company-wide cost-cutting strategy in response to TSW's failure to hit expected sales scenarios, which Funcom predicted in a press release earlier this month. The layoffs appear to confirm parts of the anonymous tip we referenced in our Secret World column last Thursday. Funcom Director of Communications Erling Ellingsen confirmed the layoffs to Gamer.no, stating that operations on Funcom's three MMOs will continue and that The Secret World's revenue model will continue as planned. Unconfirmed reports put the layoffs at 50% to 60% of the studio's workforce. "We're in the middle of the process and we can not go into more detail now," Ellingsen said. On its Twitter feed, Funcom posted the following: "Thank you for your warm thoughts and support. More information to come soon." [Update: Funcom has made a new statement to Massively in light of the layoffs, stressing that the layoffs are temporary. "As we announced in the stock notice that went out on August 10th, Funcom is in the process of reducing operational costs and this process includes temporary layoffs as well as other initiatives. As we are currently in the middle of this process we can not provide any further comment at the present time. Rest assured however that we have long-term plans for the company and that we remain fully committed to all of our games. We aim to provide more information soon."]
OnLive officially announces asset acquisition, notes that its newly formed company will keep OnLive name
Amid the rumors, sourced reports and statements, it was easy to lose track of the facts surrounding OnLive's recent restructuring efforts. No surprise then, that the newly formed outfit has issued a press release and FAQ (after the break) in hopes will clear things up. First and foremost, the firm reiterates that the streaming game service will continue operating uninterrupted, and that the "newly formed company" that acquired the firm's assets will continue to do business under the OnLive name. The announcement also mentions the Assignment for the Benefit of Creditors (ABC) process OnLive used to settle its debts, noting that "an affiliate" of Lauder Partners, a technology investment firm, was the new OnLive's first investor. Finally, the firm laments the necessity of laying off its staff, stating that "neither OnLive, Inc. shares nor OnLive staff could transfer under this type of transaction," confirming that nearly half of the previous staff had been offered positions at the new company, and optimistically projecting future hires culled from both previous and new employees. The new OnLive calls the asset acquisition "a heartbreaking transition for everyone involved," but looks optimistically to a future of "transforming the OnLive vision into reality." Check out OnLive's full, official word on the matter below.
OnLive reportedly shutting down, new company forming in its wake (update: OnLive says 'of course not')
Well, here's a bit of a shocker. After a strong showing at E3 and partnerships with companies like OUYA, gaming service OnLive is reportedly closing down, with an entire staff layoff resulting. At a glance, this sure feels a lot like the similar rise and fall of InstantAction, which was attempting to pull off something similar with cloud-based gaming. Polygon is reporting the story as relayed to the site by game developer Brian Fargo. We've reached out to the company and received a non-comment comment, "We don't respond to rumors and have no comment." Our OnLive contact also used the opportunity to plug its Google TV tie-ins and few giveaways -- so, for the moment at least, things seem to be moving along as usual. Update: Joystiq has reached out for comment as well, getting a similar, yet decidedly more blunt response: "We don't respond to rumors, but of course not." Blunt response or no, we're sure this isn't the last we'll be hearing about this one. Update 2: We reached out to OnLive again for clarification on whether the denial pertained to both the shutdown and layoff rumors. The response reads thusly: "I have no comment on the news other than to say the OnLive service is not shutting down. I'm sorry I cannot be more specific." Update 3: Martyn Williams from IDG has reported there are employees leaving the OnLive offices with moving boxes.
RIM reportedly firing up to 6,000 in $1 billion savings drive
The Waterloo Record is reporting that RIM is laying off a portion of its workforce as part of its cost-cutting review process. It's believed that between 2,000 and 6,000 employees could be let go as the troubled company attempts to save $1 billion by the end of the fiscal year. Company watcher Martin Chmiel took to Twitter to say that the manufacturing team had been hardest hit, with hundreds of people departing in the past 24 hours.
Nokia 'sharpens strategy' by dropping three executives, laying off 10,000 and dumping Vertu
Nokia is still trying to turn things around after a slew of losses, and has made some tough decisions about how to move forward by announcing it will reduce staff by up to 10,000 people before the end of 2013. That's all part of a plan to close factories in Finland, Germany and Canada. as well as refocusing its marketing efforts, streamlining support staff and reducing "non-core" assets. Also on the outs are three executives including chief marketing officer Jerri Devard, executive VP of mobile phones Mary McDowell and executive VP of markets Niklas Savander who will step down from the company's Leadership Team effective June 30th. Replacing them July 1st are executive VP of mobile phones Timo Toikkanen, executive VP of sales and marketing Chris Weber and senior VP of communications Susan Sheehan. Additionally, it has sold the luxury brand Vertu to private equity group EQT VI in a deal that is expected to close during the second half of the year leaving just 10 percent of it in Nokia's hands. That's not the end of the bad news either, as Nokia will take a charge of 1 billion Euros ($1.3 billion) by the end of 2013 as a result of the restructuring and its efforts to return to profitability. Investments going forward including buying imaging company Scalado, extending its mapping technology to "multiple industries" and pushing more Series 40 and Series 30 devices. Check the press releases after the break for all the numbers and details currently available before it reports Q2 earnings July 19th, and we also may be able to glean more info from a call scheduled for 8AM ET.
THQ confirms closure of San Diego studio
In the hustle and bustle of E3 week, on the very day THQ announced it would transition over the UFC license to Electronic Arts for an 'undisclosed cash payment," the publisher decided to close its San Diego studio."THQ confirms that today's announcement regarding the UFC license transition will affect the company's San Diego studio," the publisher informed Joystiq in a statement. "THQ is working closely with those relevant staff to either find possible employment within the company, or potentially with EA."
BioWare responds to SWTOR layoffs
If anyone knows just how brutal and unforgiving the MMO industry can be, it is certainly the folks at BioWare. Last week delivered a one-two punch to the studio, as the team had to contend with layoffs while breaking the news of server merges to the playerbase. Star Wars: The Old Republic Associate Lead Designer Emmanuel Lusinchi admitted that this came with the territory: "The MMO is the toughest part of the game industry without a doubt, and we live in tough economic times in general." Despite the layoffs, Lusinchi said that the development team is still "one of the biggest" in the industry and has detailed plans for SWTOR's future. Still, that didn't make dealing with the realities of the job cuts any easier. "On a personal level it's quite difficult to have people that you've been working with for a long time that you know personally, you go to their barbecue and you meet their families and it's never easy," he said. "I doubt it'd be easy in any industry for anyone, but it happens."
