More Layoffs in the Video Game Industry - GOG and ArenaNet

February 27, 2019
More Layoffs in the Video Game Industry - GOG and ArenaNet

This week started with layoffs at both GOG and ArenaNet. Both companies are claiming that the layoffs are happening due to a reorganization. Reports from an ex-employee suggest that GOG is in a lot of trouble, while ArenaNet is more open and forward about what is happening.

In an official statement for Kotaku, a GOG representative said the following:

“Letting people go is never easy. We have been rearranging certain teams since October 2018, effecting in closing around a dozen of positions last week. At the same time, since the process started we have welcomed nearly twice as many new team members, and currently hold 20 open positions.”

An anonymous former employee claims that GOG has been dangerously close to debts for the past few months. It is also explained that GOG couldn’t keep up with growth financially and that they were told the layoffs were a financial decision.

Due to the fact that the Epic Store offers 88% of revenue to developers, compared to the 70% at GOG, things might get worse and more layoffs are possible.

Meanwhile, ArenaNet was more open and clear in their statement. Their games are aging and new projects are being delayed while operational costs are increasing. Due to this, projects are being canceled and employees are losing jobs.

"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. Where we are is not sustainable, and is not going to set us up for future success."