November 22, 2008

Funcom lays off 70% of their US staff

Rumour has it that Funcom fired a large number of people (TenTonHammer says 70%) from their Customer Service and Quality Assurance departments in the US. It doesn't come as such a big surprise, since with the upcoming server merges, less people playing, and especially less new players joining the workload and amount of petitions must have decreased dramatically. As you can guess, I don't see how this is any reason to panic about AoC closing down or anything of the sorts. I mean, Funcom have plans to expand into Russia, Poland and Korea, and release an expansion in 2009 for Pete's sake. Although I feel for the poor GMs, getting fired just before Christmas is probably not fun.

At any rate, according to the Q3 2008 report Funcom had 318 people working for them as of September 30 this year, and that's excluding the customer service personnel. With reduced revenue from AoC subscriptions and the expenses of running several half-empty servers, it's only natural that they have to cut costs somehow, and I hope they will be back on track after server merges and, quite possibly, even more layoffs.


Andrew said...

Now confirmed by Funcom:

"We did have some staffing cuts at Funcom this week as well as new positions opening in the organization as part of our ongoing cost based efficiency and performance initiatives that are vital to any business."

Allan Anderson said...

You know how it goes. Have a low earnings report: show that you're doing something about it by cutting costs, even if it means cutting jobs. Thanks for the damage-control notes; a friend old me "wow Funcom laid off 70% of their staff!!" this morning ;)

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