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Funcom restructures Montreal branch, keeps games operational
Funcom is taking hedge trimmers to its Montreal offices today. Senior Game Designer Tanya Short posted the following this afternoon on her Twitter account: "When your branch shuts down, I guess it's less like being fired and more like honorable discharge. Thanks for going down with the ship! Bye!" Massively contacted Funcom for an official statement. Director of Communications Erling Ellingsen confirmed layoffs but assured us that Funcom's games will continue on: "We are currently in a restructuring process and the Montreal office is part of that process along with our other branches. This process unfortunately involves a reduction in staff, but the studio is not closing down. It will continue on, but in a different form and function than today. Anarchy Online, as well as The Secret World and Age of Conan, will definitely continue to operate and be an important part of the company's focus going forward." He said that the studio would provide more details when it had finished with the process. Funcom previously stated that it was restructuring the company to make it more profitable. The Montreal office was established in 2009 and employed 110 people.
Nintendo to merge handheld and console divisions by next month
Nintendo plans to unite its console and handheld divisions by February 16, combining the two into a singular unit tasked with creating next-generation hardware. As reported by Nikkei, and then confirmed to Engadget by Nintendo, the combined unit will initially incorporate 150 handheld and 130 console engineers, and operate out of a new $340 million facility located just by the company's headquarters (pictured above) in Kyoto, with the facility due to be completed by the end of 2013.The move represents Nintendo's first major organizational restructuring in around a decade. In 2002, Satoru Iwata replaced Hiroshi Yamauchi as president of Nintendo, and initiated a move which saw the company's two Research & Development teams re-assigned into the Entertainment, Analysis, and Development division.Today's news follows speculation around Nintendo's restructuring plans which suggested Shigeru Miyamoto would retire from his position as Nintendo EAD boss, being replaced by EAD deputy manager Takashi Tezuka. In a 2011 interview, Miyamoto noted Nintendo ought to be "structured" to operate without him before he'd leave the company.
Nikkei: Nintendo to launch unified console and handheld division by February 16th (update: confirmed)
Nintendo plans to merge its handheld and console gaming units into one division to create next generation hardware "that will turn heads," according to Nikkei. It's reporting that the gaming outfit is feeling the heat from tablet and smartphone gaming (and likely upstart outfits like Ouya, too) so is looking to speed up the development cycle and increase product interoperability. That's why it's allegedly bringing the brain power from all its divisions together to inaugurate the unified division by February 16th of this year -- transferring in 130 console and 150 handheld engineers, to start. Nikkei said it'll house the new team in a $340 million facility next to its Kyoto HQ that'll be completed by the end of the year, seeing it as "a hotbed of new ideas." All this comes on the heels of tepid launches of the Wii U console and Nintendo 3DS gamepad -- making a shakeup none too shocking, if true. Update: We contacted Nintendo, who confirmed by email that the report is, indeed, accurate.
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.
Sony restructuring in Japan: camera lens plant to close with loss of 2,000 jobs
Kaz Hirai's "One Sony" rescue plan was designed to unite the many disparate arms of the conglomerate, shed 10,000 jobs and make cost savings wherever it could. Facilities in Sweden and the UK have already been closed, so now the company is shifting focus to its operations in Japan. Sony will close its Minokamo site, which currently produces camera lenses for DSLRs and smartphones, with production being moved to factories in Kohida and Kisarazu, 840 staff will lose their jobs. The company is also instituting an early retirement program across its various Japanese businesses in order to push the domestic total to 2,000 -- which it must do before a self-imposed deadline of March 2013.
Jolla's Marc Dillon takes over as CEO, Jussi Hurmola to focus on Sailfish
Following big news from Jolla almost two weeks ago, it's reluctant to go quiet, instead taking to Twitter to announce that Jussi Hurmola is no longer its CEO. This isn't a story of scandal or corporate dissent, but merely a restructuring to allow Hurmola to focus on Sailfish, the MeeGo-based OS currently in development. It's no great surprise that Marc Dillon is stepping up to be the new big cheese -- he's another of the company's founders and was acting COO prior to the shuffle. Sailfish is due to be demoed for the first time in a little over a month, where we imagine Hurmola will be eager to flaunt its progress now that he's managed to palm off all that paperwork.
ArenaNet's plans for supporting Guild Wars 2
Guild Wars 2 has been live for more than a month. Now that ArenaNet has more or less dealt with initial problems like server stability, absurd imbalance, and exploits, the company can start looking forward. ArenaNet devs have long talked about providing new content and huge support for the game, and a blog post this morning details some of their plans for that. ArenaNet has "formed multiple live teams focused on expanding Guild Wars 2 in the long term." So what are those teams, and what do they do? The Live Security team is all about cracking down on bots, spammers, and scammers. The Live Response team is made up of the fine folks addressing balance issues and bugs. The Living World focuses on adding new content and rewards for PvE and WvW. There's a PvP and Esports team focused on making Guild Wars 2 the best PvP game it can be. Holidays and Events have their own special team, dedicated to keeping up the Guild Wars legacy of amazing holiday content. In addition, the Holidays and Events team will be creating one-off events that occur in the world. The Mac and Performance team is working on getting Guild Wars 2 to run on the widest possible range of hardware. Bonus teams will take care of any projects that don't fall in the direct domain of other teams. Last but not least, the Commerce team will be keeping an eye on the Guild Wars 2 economy and thinking up new goodies for the Black Lion Trading Company. Hit up the full post for all the gory details.
Report: Sharp increases layoffs number, aiming for profitability by March 2014
Japanese electronics giant Sharp is reportedly planning a major restructuring to bring the company back to profitability by 2014, as reported by Kyodo News. Said restructuring will see Sharp cut nearly 11,000 (10,966) jobs from its 57,170-person workforce by March 2014 -- just under 20 percent of all employees -- and sell off various assets, resulting in ¥213.1 billion ($2.7 billion) of much needed capital from lenders. Named assets to be sold include international manufacturing plants, and shares in other Japanese electronics company, Toshiba. The company also plans on shuttering its international manufacturing plants, as well as once again cutting employee wages. So, what's gonna save Sharp from more turmoil? A rethinking of its LCD TV business, apparently, as well as a "strengthening" of the company's smartphone LCD offerings. Sharp's also moving away from solar batteries, selling off its US-based solar firm Recurrent Energy LLC. Company prez Takashi Okuda will head up the massive restructuring, leading an "emergency management committee" starting in October. All of this adds up to Sharp expecting a return to profitability by next April. You'll forgive us if we're a bit wary of that prediction, but our best wishes are with those impacted by the chaos.
HP adds another 2,000 to the chopping block, cutting 29,000 jobs by 2014
Looks like May's Hewlett-Packard layoff numbers were about 2,000 short of reality, as the American hardware company adjusted its previous 27,000 estimate to 29,000 in a recent SEC 10-K filing spotted by ZDNet. Those employees represent approximately eight percent of HP's entire workforce, and the restructuring saves the company $3 to $3.5 billion per year -- money it badly needs following last quarter's losses. HP says that 3,800 employees were affected as of July 31, 2012 -- just over 13 percent of the restructuring total. It's unclear how many more will be affected by year's end, if any.
Sharp reports 2,000 job cuts in Japan, more changes expected
There was little doubt jobs would be on the line after Sharp's significant Q1 losses, but now it's official. Following a board meeting today, the company has joined the likes of RIM, Sony and HP, announcing the "voluntary retirement" of around 2,000 staff in Japan before the year's out. The layoffs are part of a wider, textbook reorganization plan, and are expected to cost a sizeable 27 billion yen (approximately $344 million). Neither figure is set in stone, however, so when everything is finalized we could see more jobs impacted and those costs soar. Whether this puts off potential investment from Hon Hai Precision Industry is unknown, but while Sharp's TVs get ever bigger, its wallet continues to get thinner.
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.
Sony getting out of PC optical drive business due to 'fierce competition'
It's being reported that Sony is closing Optiarc Inc., its company subsidiary that manufactures optical disc drives for PCs. Officials are quoted as saying that "fierce competition" forced prices down, causing the business to operate at a loss despite controlling roughly 15 percent of the market. Operations will be wound up by March of next year, with around 400 employees being offered early retirement and others being moved to other parts of the business. Don't worry about the future of your Blu-Ray and DVD player just yet though -- the company will continue to manufacture both as part of its Device Solutions Division.
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 hits reset after being dragged down by expensive servers, confirms service will continue
OnLive has finally issued an official statement after rumors of mass layoffs first leaked out earlier today, confirming that its assets have been acquired into a newly-formed company with what it claims is "substantial" financial backing. The big news for users is that the OnLive Game and Desktop services will remain operational and continue to be supported. The release also claims a "large percentage" of OnLive staff is being hired into the new company with plans to hire more over time, while PR informs us the leadership team remains intact. Check the words straight from the source after the break. We've heard from some of the people present for the meeting where the new plan was revealed today, confirming the company is going through a process known as Assignment for the Benefit of Creditors (ABC). A faster alternative to bankruptcy that doesn't involve the courts, it allows OnLive to deal with some of the issues it was facing, most notably an oversupply of servers for the number of users it had signed up. The ABC process allows OnLive to be unshackled from the expensive server contracts and bring in a new source of venture capital. Oh and that other major cost, the employees? Not all of the information is known yet, but beyond the loss of jobs, it turns out the stock they owned was in a company that no longer exists. We're hearing their benefits will end after August, however there are offers of contracts to answer questions about important topics like "where things are," in exchange for special form stock in the new venture. Update: Joystiq has more information from a former employee, who estimated the average number of peak concurrent OnLive users at around 1,800 or so, and the amount of retained staff in the range of 20 percent. One other tidbit? The source expects OnLive to go after recent Sony acquisition Gaikai for infringement of a game streaming patent, so stay tuned.
Star Trek: Infinite Space canned
Sorry Trekkies, but if you were hoping for a second Star Trek MMO, you're going to be waiting for some time. Gameforge announced that it is cancelling Star Trek: Infinite Space effective immediately. This doesn't come as a complete surprise, as the publisher put the beta on hold last year in a desperate search for a co-publishing partnership. Gameforge explained the decision in a statement: "Since autumn 2011 we made many efforts to find a publishing and marketing partner for Star Trek: Infinite Space. Unfortunately, our efforts were not successful. So we have decided with a heavy heart to finally abandon the project Star Trek: Infinite Space." Infinite Space was to be a browser-based title set in the war-torn Deep Space Nine era of Star Trek. The publisher had obtained the assistance of Trek staples such as Nana Visitor, René Auberjonois, and Denise and Michael Okuda.
Nokia shutters two Chinese offices as part of strategic reorganization in the region
There's a hole in Nokia's heart and it goes all the way to China. Following news this past April that a massive restructuring effort was underway for Espoo's Asian operations, comes word that offices in Chengdu and Shanghai have been closed amidst declining market share. That's according to the Wall Street Journal which says the layoffs are targeted at the company's Chinese sales division -- an area Elop's made clear is essential for growth -- as Nokia's presence in the region has dwindled to 11 percent in Q1, a sharp drop from its more robust 30 percent share last Q2 2011. And with increasing competition from rival OEMs, the layoffs are expected to continue while the house that Lumia's attempting to rebuild gains its footing.
Qualcomm restructures itself for summer, R&D division becomes wholly owned subsidiary
You know all those lawsuits swirling about in the tech industry? Yeah... Qualcomm is looking to avoid some of the weighty implications of courtroom battles with an air gap strategy that will restructure its R&D division into a new, wholly owned subsidiary known as Qualcomm Technologies, Inc. (QTI). While the parent company will retain the company's existing patent portfolio, QTI will be responsible for product development and the existing semiconductor business. Interestingly enough, it's also said that the subsidiary will ramp up its use of open source software, and it'll strive to avoid the patents of parent company, Qualcomm. It's also said that the restructuring will help the business bring its products to market more quickly, and if the company is able to avoid just one lawsuit / injunction, it may be very correct with that assertion.
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.
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.
