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Funcom to cut 20% of workforce

Tue 29 Sep 2009 9:52am GMT / 5:52am EDT / 2:52am PDT
OnlineDevelopment

Age of Conan dev struggles with costs; Secret World delayed by "several months"

Norwegian developer Funcom has announced that it plans to cut 20 per cent of its workforce in order to cut costs, with the axe falling heaviest in its home country.

The company, which created the Age of Conan MMO, will now have to delay the release of its next project, The Secret World, by several months as it reshuffles its pack, reports E24.

Funcom, which currently employs around 300 staff worldwide, is attempting to shift the bulk of its workforce to Canada to take advantage of a 37.5 per cent salary reimbursement from the state of Quebec, and with salaries generally lower there the company could stand to cut around half of its wage bill.

According to reports, company management wrote to staff earlier this month to offer relocation packages.

Last year Funcom's financials revealed a loss of USD 34 million, and while the company is currently running a loss of USD 1.2 million this year it's roughly in-line with expectation.

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