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Wave of layoffs expected at Guild Wars 2 dev ArenaNet

Update More game industry workers will soon lose their jobs, as ArenaNet confirms Kotaku's report that employees of Guild Wars 2 dev ArenaNet were warned today to expect big layoffs.

Update: ArenaNet has confirmed Kotaku's report that it plans to lay off staff as part of "a larger organizational restructuring" within parent company NCSoft. A company representative gave the following statement to Gamasutra:

"We can confirm that due to the cancellation of unannounced projects, ArenaNet will make staff reductions. This is part of a larger organizational restructuring within NCSoft in the West, but the Guild Wars and Guild Wars 2 game services will not be affected, nor is any upcoming game content canceled."

Original Article: More game industry workers may lose their jobs as this week, as Kotaku reports that employees of Guild Wars 2 dev ArenaNet were warned today to expect big layoffs.

The report is based on a source at the company trusted by Kotaku, and it's not hard to believe given the recent waves of layoffs that have battered the game industry; just last week an estimated 800 people were cut loose from Activision Blizzard, even as the company reported historic earnings.

"Where we are is not sustainable, and is not going to set us up for future success," reads an excerpt of an email, obtained by Kotaku, that NCSoft (ArenaNet's parent company) CEO Songyee Yoon reportedly sent to employees today. “The restructuring, cost-cutting, and strategic realignments are all being done to secure our tomorrow and to provide the foundation that will allow us to grow and acquire."

Part of this restructuring effort will reportedly see NCSoft and ArenaNet's publishing divisions merge, though in another excerpt of said email Yoon writes that the company plans to "cut costs across the organization."

As Kotaku points out, NCSoft has been cutting back for some time; last year it shut down struggling Wildstar dev Carbine Studios, and this year it laid off staff at its mobile dev Iron Tiger Studios.

Gamasutra has reached out to ArenaNet representatives for further details on what's going on. If you or someone you know is being affected by this, you can contact Gamasutra to tell your story in confidence. 

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