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Essential lays off 30 percent of its workforce
Essential Products, the company behind the Essential Phone, has laid off around a third of its employees. The hardware and sales departments were reportedly hit hardest by the cuts.
Tesla lays off nine percent of its workforce
Tesla hasn't produced nearly as many of its vaunted Model 3 affordable EVs as it expected, which has led to a quarter of those who preordered the vehicle to demand refunds. As early as this year's first-quarter earnings call, Elon Musk told employees that a reorganization was coming -- and it came today. Musk published an internal email on Twitter revealing that the automaker is cutting around nine percent of jobs across the company.
The Road to Mordor: When storm clouds gather...
When I think about the news swirling around Lord of the Rings Online lately, I feel a bit like Sam and Frodo getting their first glimpse of Mordor and Mount Doom. It's hard to think of cheer and happiniess when the view is full of heavy clouds and ash. I have several positive articles that I'd rather be penning this week, but I think it would be a mistake to avoid the questions and feelings that all LotRO players are experiencing right now, including me. It may not be the journey that I'd like to be taking, but it's the one that's needed right now. So let's sit down together, fill our tankards, and mull over just what's going on with our Middle-earth. Maybe in the talking and in the company we will find the solace and comfort that we need.
Turbine suffers another round of layoffs
Gamasutra and Twitter are reporting that an unspecified number of Turbine employees have been fired today in a new round of layoffs. A Warner Bros. representative responded with an official statement: "As part of our normal business process, we're routinely looking at the strategic alignment of our company. Unfortunately, in order for us to invest in growth areas at Turbine, we have to eliminate some positions. These are always tough decisions, which we don't approach lightly, but it's crucial that Turbine is structured in a way that reflects the current and coming marketplace." Massively has reached out to Turbine for additional comments.
Criterion: Downsizing was a studio decision, not EA's
Criterion Games' studio director Fiona Sperry revealed in an interview with PCgamesN that the company's recent downsizing was an internal decision, and not the result of a demand by studio owner Electronic Arts. "We lent some people (artists and engineers primarily) to [Need for Speed: Rivals developer Ghost Games], as when you're making something new you don't need a whole team of people -- we didn't need them, Ghost did -- so it all just made sense," Sperry told PCgamesN. "[It] wasn't something EA 'asked' us to do." Sperry clarified, explaining that Criterion made the decision in order to shift its focus away from EA's Need for Speed series. "Criterion has always been about doing our own games so it was never the long term plan for us to stay doing Need for Speed," Sperry said. "That's not our game." Sperry continued: "My management team at Criterion sorted it out with the management team at Ghost. That's how things work at EA these days. Teams work together, coordinate sharing of people as it suits where projects are at." Criterion's current project is not yet announced, though the company has confirmed that it's not a racing game.
Iwata: Profitability possible without layoffs
Nintendo global president Satoru Iwata believes that his company can get back into the black without firing any of its employees, through good ol' fashioned efficiency and cost-saving measures. "It is true that our business has its ups and downs every few years, and of course, our ideal situation is to make a profit even in the low periods, return these profits to investors and maintain a high share price," Iwata said during a recent shareholders meeting, in response to a question about "corporate restructuring" as a solution to Nintendo's problems. "If we reduce the number of employees for better short-term financial results," he continued, "employee morale will decrease, and I sincerely doubt employees who fear that they may be laid off will be able to develop software titles that could impress people around the world." Iwata also noted that global exchange rates have played a major part in Nintendo's financial situation, saying that "the influence of exchange rates is the main aspect of this matter," rather than Nintendo's headcount. "Employees make valuable contributions in their respective fields, so I believe that laying off a group of employees will not help to strengthen Nintendo's business in the long run," he said. "Our current policy is to achieve favorable results by continuously cutting unnecessary expenses and increasing business efficiency."
Opera confirms downsizing of developer team as it readies for newly adopted WebKit era
Opera's been making quite a few notable changes lately, and now we're finding out it won't be without any repercussions to some of its staff. Earlier today, Opera CEO Lars Boilsen's confirmed to our friends over at TechCrunch that the browser's developer team is indeed downsizing, confirming previous reports about the company having to make changes as part of its recently announced WebKit adoption. Just how many Core positions will be lost in the process is still unclear, however, with Mr. Boilsen only going as far as telling TechCrunch the number of developers working on the overall project is now at "around 600." What's more, Opera's CEO says it's all part of a belief that "WebKit's good enough, to switch, and by doing that we free up a lot of resources," adding that Opera "will still have a Core team but it will be less people going forward."
Fujitsu to merge LSI chip business with Panasonic, cut 5,000 jobs
Intense semiconductor competition has already forced numerous Japanese companies to work together, and now Fujitsu has announced that it'll merge its LSI chip design and R&D divisions with Panasonic. The two companies are looking to the state-run Development Bank of Japan to fund the new venture, which comes in the wake of expected Fujitsu losses of over $1 billion this year -- forcing the company to cut 5,000 jobs and transfer 4,500 to other divisions by March 31st. Fujitsu said it's also looking to transfer a state-of-the-art LSI fabrication line in central Japan to a new foundry venture with Taiwan Semiconductor Manufacturing, the world's largest chip maker. That carries on a trend in declining Japanese chip dominance, exemplified by Elpida's bankruptcy and the recent government bailout of Renesas, which itself is a merger of NEC, Hitachi and Mitsubishi's semiconductor operations. [Image credits: Wikimedia commons]
PS All-Stars dev SuperBot lays off unknown number of employees
Superbot Entertainment, the Sony-owned developer responsible for PlayStation All-Stars Battle Royale, has suffered layoffs today, IGN reports."SCEA can confirm that SuperBot Entertainment did make a reduction in their workforce today," a Sony representative told IGN. "The studio and SCEA remain committed to supporting PlayStation All-Stars Battle Royale post launch, including developing the title's forthcoming DLC releases in the coming months."Currently, the number of employees affected by the downsizing remains unknown, though we have reached out to both Sony and Superbot for more information about the situation and will update as details become available.Update: Sony has confirmed to us that layoffs have indeed hit Superbot, though no further information was given. Its full statement on the matter can be found after the break.
Source: OnLive undergoing buyout in wake of dire financials, laying off 'at least 50 percent' of staff
After a lot of back and forth from the rumor mill and official OnLive channels, we now have what we believe to be a far clearer view of precisely what is happening right now at OnLive headquarters in Palo Alto. We've spoken with a (now former) employee of the gaming service who ran down today's events for us. According to the account, a meeting was held at OnLive's offices at 10AM this morning, wherein the company's CEO announced a massive staff layoff -- at least 50 percent of the staff, according to our source's numbers. The layoffs come as part of across the board cuts to the company, and all those out of a job will have their key cards deactivated as of 4PM local time today. The source was understandably baffled by the abruptness of the news, along with the added blow that no severance will be offered and stock holdings are essentially worth nothing. The move apparently comes as OnLive is being purchased by an unknown party. Those being kept on have reportedly received offer letters from the new company. Why the sudden move? The source believes it may have something to do with the company's massive operating costs, which we're told are around $5 million a month. Certainly those concerns line up with a story dug up by Kotaku highlighting the company's plans to file for Assignment for the Benefit of Creditors as a result of the company's troubled financial situation. We're still gathering information as to the nature of the buyout. Update: According to our source, the writing wasn't on the wall at the company per se, but OnLive had reportedly been entertaining acquisition offers ahead of the news from companies including HP. Update 2: Our source has offered up some additional information on the matter, putting the average concurrent user number for the service at 1,100 to 1,500, peaking at around 1,800 on a given day -- not exceptional by any means in the face of reported $5 million a month operating costs. The number of layoffs, meanwhile, may well be greater than originally suggested, with our source putting the number of employees staying on board at around 10 to 20 percent.
ST-Ericsson to pass off application processor business to STM, cut 1,700 jobs
It's not every day that ST-Ericsson crosses our radar twice, but in addition to reportedly signing a deal with HTC for developing low-end handset chips, the company just announced its plans for a turnaround. The message? A heavier focus on SoCs for smartphones and tablets, along with a push for even more partnerships to develop those products. While that all sounds rosy, ST-Ericsson is also ceding its application processor business -- employees, R&D and all -- to STMicroelectronics. All told, between the loss of its application processor business and other reshuffling, the company expects to shed around 1,700 jobs -- and save about $320 million annually. Those bittersweet details and more await you in the press release after the break.
Nokia drops another 1,000 employees, Finnish plant focusing on software
To say it's been a rough year for Nokia would be a huge understatement. And things are only going to get worse before they get better. Case in point: the company just finalized an agreement to cut up to another 1,000 jobs (which we knew was coming), all at its plant in Salo, Finland. The cuts will not happen all at once, instead positions will be phased out over the course of the year, with most layoffs coming before the end of June. For those in Western Europe it's another batch of manufacturing jobs heading to Asia, for Nokia it's simply part of a restructuring plan designed to help it stop the bleeding. The staff that remains will focus on installing software that caters to European customers. After several quarters of bad news and then a complete shift in smartphone platforms it only makes sense that Nokia would find itself in dire straights. Still, in a country where unemployment hovers at around eight percent, we're sure no amount of national pride will make people feel better about losing more jobs.Update: In case it wasn't clear, we just wanted to clarify that these are cuts that Nokia had already announced. The company has simply struck a deal with its employees making the move official.
Blizzard announces layoffs of 600 employees worldwide
Blizzard Entertainment, creator of the perennially popular World of Warcraft, announced today that it would be laying off 600 of its employees worldwide. While Blizzard takes care to note that WoW's development won't be impacted by the layoffs, we find it a bit difficult to take solace in that fact when hundreds of people are losing their jobs. Blizzard CEO Mike Morhaime commented on the layoffs, stating that "Constant evaluation of teams and processes is necessary for the long-term health of any business. Over the last several years, we've grown our organization tremendously and made large investments in our infrastructure in order to better serve our global community. However, as Blizzard and the industry have evolved we've also had to make some difficult decisions in order to address the changing needs of our company." Understandable, perhaps, considering the fluctuating nature of the industry, but we still wish those Blizzard employees hit by the layoffs the very best in their future endeavors. Good luck, folks.
HP cuts 275 webOS jobs in transition to open source
In news that should come as little surprise to anyone who's followed the decline of the ill-fated brand, HP is reportedly laying off 275 webOS employees as it transitions the division from producing hardware to open source software. The cuts have apparently been in the works since the company announced the move to open source back in December, and follow on the heels of former Palm chief, Jon Rubinstein's departure last month. A statement from the outfit cited the need for "a more nimble team" to "sustain HP's commitment to the software over the long term," and stated HP's intentions "to redeploy employees affected by these changes to other roles at the company." While reports have surfaced saying the cuts are primarily in engineering, we're told positions in multiple departments are at stake.
Nokia transfers Symbian development and 3,000 employees to Accenture, will downsize workforce by further 4,000
Nokia's already done quite a bit to cut ties with last year's big push for Symbian and Qt development, though this is perhaps the biggest step yet. The Finnish company has announced it's transferring responsibility for Symbian development to consulting and outsourcing firm Accenture, which sounds odd given the latter outfit's inexperience in delivering mobile OS updates, but the good news is that the 3,000 devs Nokia had working on Symbian will continue their jobs under the new employer. That basically means that Nokia will live up to its unhappy promise that there'll be "substantial reductions in employment" within its own ranks, while still keeping the men and women responsible for updating Symbian employed. Unfortunately, there will still be a further 4,000 job cuts in the company's global workforce, primarily in Finland, Denmark and the UK, which will "occur in phases" between the beginning and end of next year. Nokia's agreement with Accenture also involves continued collaboration on delivering mobility software and services on the Windows Phone platform. You can read more about that in the PR after the break.
Mitsubishi drops LCD HDTVs to focus on 73-inch and above sized displays
That we didn't spot a successor to Mitsubishi's well-received line of Unisen LCD HDTVs at CES 2011 should have been a signal, but now the company has made it official -- it is downsizing TV operations, closing some offices and leaving the LCD TV business entirely. As the only company still selling rear projection sets to consumers, a letter from senior VP Cayce Blanchard (included after the break) indicates the plan is to focus on selling DLP and Laservue TVs in sizes above 73-inches where its flat panel competitors rarely reach. It will also keep selling projectors, display walls, printers and large public display screens up to 140-inches in size -- the Cowboys Stadium set was manufactured by sister company Mitsubishi Electric Power Product -- to other companies. Of course, as sad as everyone is to see the LCDs go, that just means there's even more time to focus on the 92-inch DLP that should hit shelves later this year. Time well spent, we'd say.
More jobs cut from Fallen Earth
It's always heartbreaking to hear of a company's being required to lay off staff, especially so when it's in a game one really enjoys. Fallen Earth, long a favorite with a handful of the staff members here at Massively, has just laid off three very well-known and well-loved members of its team. The impacted members who have been laid off today are Producer Dave "Archangel" Haydysch, Marketing Director Jessica "Circatrix" Orr, and Director of Content Development Wes "Canticle" Platt. We reached out to the team over at Fallen Earth, LLC/Icarus Studios for an official statement about the layoffs, considering we saw the last round of layoffs and restructuring in April this year. While there are no greatly illuminating details to the reply, today's announcement, coupled with the prior layoffs, doesn't generally bode well for this gritty indie MMO. For those curious about the team's reply, we've posted it behind the break.
Dell to cut even more jobs as it reduces costs
Looks like Dell's plan to trim $3B in costs from its budget is going to involve even more job cuts than the 8,800 already announced -- speaking to analysts today, Michael Dell said that his company's management had "identified a very significant opportunity" to cut costs, and that it was "aggressively going after it." That means even more jobs will be slashed, apparently -- a further 1,000 this quarter at least, but Dell wouldn't say what the total would be in the end, just that it would be more than 8,800. Dell went on to say that no part of the company would be considered sacred as cuts are considered, and that Dell's brass thinks that it's "begun the journey to transform the company." Cutting jobs is one way to do it, sure -- but might we suggest focusing on delivering great products would also help?
Motorola to cut another 2,600 jobs
The tough times just don't seem to end at Motorola -- the company announced today that it's laying off another 2,600 workers, for a total of 10,000 positions eliminated since the start of 2007. That's on top of the various high-level executive departures that have been taken place lately, not to mention the company's plan to split off its mobile phone business, which will undoubtedly lead to more cuts down the line. The goal is to reduce costs by some $500M by the end of the year, and some of the jobs being lost come as Moto closes a factory in Singapore and a WiMAX development lab in Florida. There's no word on when the cuts are going to come, but here's hoping all these aggressive steps lead to a little vacation for Sad Moto here.
Nintendo Power shutting down?
We attempted to think of something witty and clever to start the post off with a bang, but in the end, it would just be inappropriate. For at least one of us here on staff, Nintendo Power delivered the very first experience to the concept of gaming journalism.Recent reports, however, have indicated that massive layoffs have been implemented at the publication. This is by no means an official announcement, but certainly either a massive downsizing or outright cancellation. NP has been putting out their pages for nineteen whole years, and it would be a great loss to the gaming community to see such a mainstay eliminated.That said, our brilliant coverage of all things Wii and DS have probably helped in some small way to facilitate this grim news. Oops. Also, will this affect the tentative plans to bring legacy NP content to the Virtual Console? If they have to die, let their memory at least by memorialized in style.
