Guild Wars 2 developer ArenaNet confirmed that it would be laying off staff as part of a "larger organizational restructuring." Sources previously reported the impending layoffs following a meeting earlier today at ArenaNet discussing the impending decision with staff.
According to Kotaku, ArenaNet employees received an email earlier today from NCSoft West CEO Song-Yee Yoon with the news. "Our live game business revenue is declining as our franchises age, delays in development on PC and mobile have created further drains against our revenue projects, while our operating costs in the west have increased," Yoon wrote in the email. "Where we are is not sustainable, and is not going to set us up for future success."
ArenaNet is reportedly developing several unannounced titles but has not released an expansion to Guild Wars 2 since 2017. The years between releases has hurt the company financially. There's no word on how many layoffs will occur at ArenaNet, but employees are going public about the layoffs on social media.
Now that our company meetings are over: Yes, ArenaNet has announced layoffs today. We are not being shuffled out right away, decisions are pending. ArenaNet has been very very transparent with us today in the meetings, which is something I appreciate very much.— Jennifer Scheurle (@Gaohmee) February 21, 2019
ArenaNet has issued a statement regarding the layoffs to press writing, "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 services will not be affected, nor is any upcoming game content canceled."
This is yet another high-profile layoff following Activision Blizzard's decision to cut eight percent of its staff across the entire company, resulting in about 800 layoffs. NCSoft had previously shut down struggling subsidiaries like Wildstar developer Carbine Studios, and laid off staff from Iron Tiger Studios, a mobile games developer.