NCSoft lays off unknown number of staff

South Korean developer to create four wholly-owned subsidiaries as part of restructuring efforts

Image credit: NCSoft

NCSoft has laid off an unknown number of employees following a “broader internal reorganisation.”

The South Korean developer announced that “certain development projects and support functions will be downsized or closed” due to its “focus and prioritisation strategy for efficient resource allocation.”

“This process will involve the reassignment of internal members and the implementation of a voluntary retirement program,” it added.

Co-CEOs Taek-Jin Kim and Byung-Moo Park said NCSoft is “at risk of falling into a chronic deficit company” following a “deteriorating” second quarter for the year, as reported by South Korean news agency Yonhap (via Game Developer).

Kim and Park said “large-scale change” was needed “for the survival and future of the company” and that it “promise[s] active support and compensation to those affected.”

As part of its restructuring efforts, NCSoft has created four new wholly-owned subsidiaries, which will be established on February 1, 2025.

These include three independent game development studios and one “AI-focused entity.”

Studio X will continue the development of Throne and Liberty. Studio Y and Studio Z will oversee the development of Project LLL and Tactan, respectively.

NCSoft’s AI research division, NC Research, will be spun off to form NC AI. It will “specialise in advancing NCSoft’s proprietary AI technologies, including Varco LLM, and will apply these innovations to game development as well as explore new business opportunities.”