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Layoffs confirmed for 38 Studios, Rhode Island takes no action
If last week's Project Copernicus flythrough had been a hopeful note, the latest news out of 38 Studios is another downturn. Following a meeting today, the Rhode Island EDC board decided to take no action to help the ailing company at this time. Governor Lincoln Chafee said following the meeting that the financial situation of the studio remains unchanged from last week, but did note that the company has seen some layoffs and underwent unspecified internal shifts. Founder Curt Schilling did not directly respond to press inquiries, stating that he would answer questions when he is able to do so. He did, however, state that he was not taking further taxpayer money. Whether or not there will be a company there to take any money in the near future is still very much in doubt, however, and while Chafee has been a bit more diplomatic about aiding the studio, he has stressed that any assistance would be far on the conservative side.
T-Mobile to eliminate 1,900 US call center jobs, says more 'restructuring' ahead
T-Mobile USA CEO Philipp Humm sent word to his employees today that the company will be shuttering seven call centers, cutting a total of 3,300 jobs in the process. Affected employees will have the option of relocating to any of the 17 remaining call centers throughout the country, where 1,400 new positions will be available, essentially bringing the net job loss to 1,900. The call centers affected include Allentown, Pennsylvania; Fort Lauderdale, Florida; Frisco, Texas; Brownsville, Texas; Lenexa, Kansas; Thornton, Colorado; and Redmond, Oregon -- so if you're based in one of those locations and want to stick with T-Mob, now would probably be the time to communicate your intentions. Other employees, including technicians and "front line" workers, will be able to stay put, though Humm did allude to further reductions, adding that "we will also be restructuring other parts of the company." You'll find the CEO's message in its entirety just past the break.
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.
LightSquared to cut staff by 45 percent as troubles grow
Yet another bit of bad news to add to the pile for LightSquared -- the company announced this week that it will be cutting back on its employment numbers by 45 percent. The cost cutting move comes a day after word got out that it had defaulted on a hefty $56.25 million payment. According to reports, the Virginia-based company, which currently employs some 330 people, is apparently not looking into bankruptcy, in spite of its mounting troubles.
Nokia ends European, Mexican production: it's all Asia now (Updated)
Nokia's wielding another axe to its operations, cleaving away a further 4,000 employees from its operations in Finland, Hungary and Mexico. It follows a shedding of roughly 10,000 employees and a troubled withdrawal from Romania as the company pushes more operations towards Asia in an attempt to compete with its competitors. Whilst no more phones will be assembled in Europe, the company isn't closing the facilities outright, they'll be retained for "high value activities" (presumably R&D and other big-ticket projects). Whatever comes of Steven Elop's reign of the world's number one handset maker, it's clear to see that he's got a plan and he's sticking to it.Update: Nokia got in touch to clarify that the factory in Manaus, Brazil is unaffected by these cuts. The three factories mentioned (in Salo, Reynosa and Komarom) will furthermore be used for the software-portion of production, including installing carrier-and-region-specific features in the Americas, Europe and Eurasia. Hardware assembly will now take place at the company's existing facilities in Beijing (China) and Masan (South Korea).
With federal loans blocked, Fisker halts work on Project Nina, lays off 66 workers
Fisker Automotive's bumpy 2011 appears to have given way to an even rockier 2012. A little more than a month after recalling 239 of its Karma plug-ins, Fisker has now stopped working on its second electric vehicle, following the US government's decision to suspend its federal loans. The manufacturer confirmed the news in an email yesterday, adding that a total of 66 workers in Delaware and California have been laid off, as a result. In 2009, the Department of Energy provided Fisker with $528.7 million in federal loans, but according to spokesman Roger Ormisher, access to those funds have been blocked since May. The money was supposed to be used to launch the Karma and Fisker's second, US-manufactured EV, known as the Nina. The Karma began rolling out to market in July, but did so well behind schedule, spurring the DOE to suspend its loan."Our loan guarantees have strict conditions in place to protect taxpayers," Department spokesman Damien LaVera explained in an email to Bloomberg. "The department only allows the loan to be disbursed as the company meets certain milestones and demonstrates results." Thus far, Fisker has drawn on only $193 million of federal funds and is looking to renegotiate the terms of the loan, in the hopes of accessing the remaining $336 million. The DOE, however, is still under intense scrutiny because of September's Solyndra debacle, so it's difficult to say what a renegotiated deal would look like. The manufacturer, for its part, says it's taking no risks, telling GigaOM that it "continues to pursue alternative funding sources." In the meantime, it'll continue to focus on the Karma for 2012, and hopes to revive Project Nina at a later date.
TomTom looks to shed ten-percent of workforce in restructuring effort
We have some sad news to report out of Holland today. TomTom has announced that it will release nearly ten-percent of its employees as the company works to reorganize and move away from the personal navigation device market. The struggling firm previously stated that it would trim €50 million from its annual operations budget, and many of TomTom's employees will now face the ramifications of this effort. Moving forward, the company will focus primarily on in-dash navigation equipment that's pre-installed by automotive manufacturers, along with fleet management for delivery companies. Hopefully we'll see some better times ahead for the Dutch firm. Frankly, we don't know what we'd do without the likes of Mr. T, Han Solo and Burt and Ernie leading the way.
Adobe to lay off 750 workers, restructure around digital media, marketing
The company made famous by the ubiquitous Flash Player and multimedia software like the Adobe Creative Suite has announced its plans to eliminate 750 full-time positions in attempts to reposition itself as a leader in digital media and marketing. In two separate press releases, Adobe gave a glimpse into the restructuring, which it will cover in-depth at a financial analysts meeting in New York tomorrow. The company expects the plan to result in pre-tax charges somewhere in the ballpark of $87 million and $94 million, a large chunk of which will come from expenses "related to employee severance agreements." According to one of the two press releases, the master of Flash plans to continue offering the Creative Suite as well as expanding "tablet-based touch apps" and cloud-based software. It's also promised to invest further in HTML 5 through tools like Dreamweaver, the recently announced Edge and PhoneGap, which it acquired with the purchase of Nitobi. Despite the shakeup, Adobe expects to meet its previous Q4 projections of between $1.075 billion and $1.125 billion. A bunch of corporate what-nots await you in the dual press releases after the break.
Layoffs underway at HP's webOS division, hundreds of employees may be in jeopardy
HP's webOS-powered devices are riding off into the sunset and so too, apparently, are hundreds of jobs. Sources close to the company tell All Things Digital that upwards of 525 employees at HP's Palm division are slated to lose their jobs in the near future, as part of a layoff process that began this week. In a statement, an HP spokesperson explained the decision thusly: "As communicated on August 18, HP will discontinue the development of webOs devices within the fourth quarter of fiscal year 2011, which ends Oct 31 2011. As part of this decision, the webOS GBU is undergoing a reduction in workforce. Today's actions are part of this initiative. During this time, we stand by our commitment to our webOS customers and will work to ensure that support and service for customers are not adversely affected." The company went on to say that it's still "exploring ways to leverage webOS software," but declined to specify the exact number of hardware-related jobs that would be cut.
Panasonic will layoff 17,000 workers globally (updated)
No matter how you slice it, 17,000 is a big number, especially when its seventeen thousand humans looking for jobs. The layoffs represent a four-percent reduction of Panasonic's 380,000 global workforce due to restructuring efforts, according to Nikkei. They are expected to begin this year and will mainly impact employees outside of Japan. Update: Post updated to reflect the actual number of job cuts, not the 40,000 originally quoted by Nikkei or the 35,000 quoted by the AFP. The cuts will come over two years. The news comes as Panasonic reported a ¥40.7 billion ($499 million) loss for quarter, largely on account of a ¥61 billion ($748 million) restructuring cost. Panny says that its bottom line was also affected by a strong Yen, stiff competition in television sales, and the recent earthquake and tsunami.
Skype happy to offer jobs to any Finns who might be in need
Over 1,000 disgruntled Nokistas walked off the job last week and, while presumably all of them showed up punctually on Monday morning, it remains to be seen how many will get proverbial pink slips as Elop starts making cuts. When that time comes Skype is happy to say that they'd like to hire as many as possible. CEO Tony Bates has no qualms about making the best of this situation, saying the following to Reuters: There is going to be tremendous talent out there... "Our primary engineering focus just so happens to be somewhere between Finland, Estonia and Stockholm, so you can imagine that's a great opportunity and we're hiring. Hear that, shunned Nokia elite? Now turn that frown upside down.
Nokia workers mourn death of Symbian, thousands walk out
We know how you feel about the apparent death of Symbian, and you had to figure that those most affected by it wouldn't be feeling too good either. Those people are, of course, the 1,500-odd workers at Nokia's Tampere office who have crafted the OS through the years, over a thousand of whom apparently walked away from their jobs today as a sort of non-violent protest -- or maybe just to get a preview of what their Friday afternoons will look like once Elop starts dropping the axe. It should be noted that they used their flexible work schedules to enable this, so this is one orderly bit of social dissonance that shouldn't result in any accelerations of whatever layoffs are to come.
Microsoft layoffs: the axeman cometh? (update)
Nothing like rumors of corporate layoffs to throw 89,000 Microsoft employees into unproductive turmoil. This time the rumors are being mongered by the Wall Street Journal and TechFlash, both of whom have been told to expect "far smaller" cuts than the 5,000 heads lost during the global financial downturn. And while it's easy to come to the conclusion that this round of layoffs is the result of the Kin debacle, keep in mind that Microsoft is entering a new fiscal year -- the perfect time (from a budgetary perspective) to trim down and refocus on new strategies. Still, if this does affect the Kin team, then let's just hope that the skilled engineers toiling inside the project's pink trenches are spared when the reductions begin as soon as today, according to TechFlash. While J Allard may be gone, one executive alone doesn't create a culture and governance model that builds multi-million dollar silos of duplication and then turns a blind eye to inter-team stonewalling. We say aim high when it comes time to swing that axe Microsoft. Update: TechFlash is now reporting that, yes, Redmond has wielded its handled blade. At this point it's suggested to run only in the hundreds across the globe, and "the low hundreds in the Seattle region," across several groups. Sounds indeed more like a pruning of its over 88,000-strong workforce and less like Kin fallout.
Rumor: Red 5 Studios lays off one-third of its staff
Their official site reads "Red 5 Studios is seeking highly talented and driven programmers to help us build a AAA massively multiplayer title." Well, maybe not. A report from Gamasutra gives the news that we never like to hear or report: Red 5 Studios -- founded by former World of Warcraft team members -- has laid off approximately 30 people. This report comes from a "reliable source" close to Red 5, and if the number is accurate, it's nearly a third of their 100-man team. (That figure from a December 2008 interview with CEO Michael Weingartner.) Red 5 Studios has been around since 2005, and as a rule has stayed very quiet regarding their ambitions for their upcoming MMO. They secured funding in 2006 and made some staff changes in 2008, but it's been mostly silent on the Studio 5 front for the most part, until now. Our best wishes go out to those affected by the layoff, and to all involved. [Thanks to everyone who sent this in as a tip!] Update: Red 5 has confirmed and clarified this rumor via a press release announcing the restructuring of the company: "As part of the restructuring, some team members chose to part ways while others were let go."
Sony Ericsson closing four facilities, laying off 2,000 employees worldwide
Sony Ericsson has yet to make this public, but we've learned that the flagging handset maker has caved once more to the pressures of the modern phone market place. If you'll recall, 450 employees were nixed from the company's payrolls in September of last year, and now the entire Research Triangle Park facility is being shuttered. In an internal announcement made this morning, SE is fixing to close four total sites: RTP in North Carolina, a smaller Miami facility and operations in Kista (Sweden) and Chennai. All told, 2,000 employees will be trimmed, with severance packages being offered to those who qualify. As of now, the departing individuals have yet to be chosen, with employees in RTP given the opportunity to apply for jobs elsewhere (likely in Atlanta or California). We're told that the cuts will happen "in stages," with project teams being assembled as we speak to work out the logistics. Frankly, we aren't as shocked as we are saddened to hear the news -- SE has refused to keep pace with the other handset makers, and its decision to wait until next year to ship an Android device is indicative of the choices that have kept it in the shadows these past few years. Here's hoping this restructuring effort actually gets things headed in the right direction. Update: And it's official. SE will also be shutting down small offices in Seattle and San Diego, with its North American headquarters shifting from RTP to Atlanta and its research and development operation transitioning from RTP to Redwood Shores, California.
Gazillion layoffs hit Romero's Slipgate Ironworks
Whatever Gazillion Entertainment's secret mastermind plot is, their next step has been to create an unfortunate situation for a suspected 50 now ex-employees at Slipgate Ironworks. The reasoning? According to Gazillion, "As part of our focus on reaching the widest possible audiences with breakthrough MMO entertainment, we decided to change the format of our project at Slipgate Ironworks to better achieve this aim," So, whatever unannounced MMO the team was working on is now canned, it would seem. At least there's a silver lining, in some sense. Gazillion also stated, "-the other Slipgate staff are already in discussions around the many open positions across our slate of projects." You know what? We'd make another world conquering joke here, but that'd be too easy. Instead, we're just going to sit in our chair, pet our cat and sip this lovely whipped latte. Oh, whoops, guess we just can't help ourselves sometimes.Seriously though, next year is going to be interesting, because the official statement alludes to something being released from the publisher next year. Unless they're just talking about Jumpgate Evolution -- at least, we hope that comes out by next year -- and then we're not really sure why they just didn't say as much.
i-mate CEO says company isn't dead yet, just dealing with 'major fraud'
Well, it looks like the reports of i-mate's demise may have been slightly exaggerated. Of course, most of its employees are still laid off, its offices are still closed, and no one's answering the phones, but i-mate CEO Jim Morrison assures us that "everything about i-mate will continue." It turns out the company is just dealing with some "major fraud" that was discovered at the end of August as it was beginning to introduce a new line of devices, which led to some problems with little things like "paying employees." Those employees are also now said to be considering taking things up with the local authorities in Dubai, which Morrison admits would make things "difficult," although he insists that the company still has those new products ready to go, that it's "looking for more funding," and that "there is a lot of good stuff happening."[Thanks, Brendan]
Former Warhammer Online GM gives perspective on game's decline
At Massively we must often report on declining subscription numbers and subsequent layoffs in the MMO industry, just as we do when the games we love are healthy and growing. When you look beyond the numbers though, such industry statistics are ultimately about people whose lives have been negatively impacted. They face uncertainty in their career and likely have tough times ahead. Case in point: We've written about the Mythic Entertainment layoffs from the view of an outside observer of the MMO industry, but of course there's a side to this that only someone who's worked there can really convey. Some have a story they'd like to tell, like Jeremy Monken, former games reviewer for a D.C. newspaper turned Warhammer Online GM at Mythic Entertainment.
Analyst calculates layoff totals, the belief in a 'Gaming Renaissance Movement'
M2 Research market analyst Wanda Meloni estimates that 8,450 game industry employees have been let go since July 2008. North America had approximately 6,300 layoffs (75 percent), which represents 12 percent of the region's workforce -- her piece was published on Gamasutra last Friday, so it likely doesn't take into account the Massive and 3D Realms hits.Meloni's "glass half full" view of the layoffs is that these folks will start small development studios and form part of what she's calling the "Gaming Renaissance Movement." She feels that these start-ups -- many self-funded through severance packages -- have the "creativity, vision and sheer grit" (not to mention: no other choice) to do their best to make it.The majority of Meloni's post goes into detail about what tools, funding and partners these start-ups have at their disposal. As for us, we're just looking to give the "layoffs" tag a rest.[Via Edge] [Image]
