UPDATED: Lead Game Designer Jennifer Scheurle has confirmed the layoffs via Twitter. The employee meetings have been completed as of this writing, while those affected are processing the news.
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
Kotaku has just published an article suggesting that ArenaNet is j"planning big layoffs" according to one person inside the company. The article further states that, while the number is not yet known, it will be a "significant number of people".
According to the report, Songyee Yoon, NCSoft's CEO, has informed employees via email. "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."
As a result of the above, the company will be cutting costs "across the organization" and will restructure several departments including merging "ArenaNet's and NCSoft's publishing divisions".
According to the inside source, ArenaNet CEO Mike O'Brien will be meeting with staff members about the email and that more information about layoffs will be disseminated at the time. UPDATE: According to Kotaku, those affected will be provided with two months severance if one of those laid off.
Around 400 people work at ArenaNet, and for the past few years they’ve been working on a number of unannounced projects, according to one person familiar with goings-on at the company. However, that person said, slow development progress combined with a lack of new games in 2018 and 2019 has led to a financial squeeze. ArenaNet’s last release, the Path of Fireexpansion for Guild Wars 2, launched in September 2017.