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Funcom announces restructuring, closures

The Secret World studio Funcom has revealed plans to restructure its operations, resulting in office closures and job losses.

In a statement posted on its website, Funcom said it has “initiated a process of restructuring the company around its core products and technology”.

"The restructuring of the company will involve cost reductions through the closure and the consolidation of offices with the goal of creating a stronger unified organization that can take full advantage of the exciting opportunities that face the games industry as it steps into 2013 and beyond."

While Funcom is based in Norway, it also runs a Montreal studio, which will be affected by the restructuring but not closed entirely, a company spokesperson told GamesIndustry International. The news follows a round of staff cuts made last August, which were speculated to affect about half of the studio's global workforce.

“The restructured organization will continue to focus strongly on its existing, successful MMO games; Age of Conan, Anarchy Online and The Secret World,” Funcom said this week, noting that it hopes to increase profitability by “providing more organizational focus and strengthening the competence of a joint central team that will continue to operate and enhance these games”.

The new organization will also “be better equipped to realize the strategy of building smaller high quality MMO games” such as upcoming title LEGO Minifigures, it added.

Funcom dropped mandatory subscription fees for The Secret World last month, and this week it claimed that the strategy has proven “successful”, resulting in increased activity levels of over 400 per cent and a 30 per cent rise in monthly sales.

Company CEO Ole Schreiner said of the restructuring announcement: "We are building the basis of a very sustainable business. With a restructured organisation, we will have a joint team of the best-of-the-best working together to expand our existing online worlds and to create new, exciting and memorable online experiences."

Topics

layoffs

1 comment

  • rxb - January 11, 2013 11:58 a.m.

    Sad times, hope the devs get new jobs soon.

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