Following rumours of staff redundances, MMO publisher NCsoft has confirmed that 70 employees at its Austin headquarters have been laid off as part of new plans to restructure the company.
Initial reports suggested that NCsoft was being forced to reduce its staff following poor subscription figures for massively multiplayer titles City of Heroes and City of Villains. One article on developer blog f13.net suggested that 90 per cent of tech staff and 75 per cent of QA testers were to be made redundant - figures which the publisher has since refuted in an official statement.
"NCsoft's Austin business has announced an immediate restructuring within its organisation that included the difficult task of reducing members of its workforce," the statement reads.
"The online games industry is one that is continually changing with the scaling up and down of business based on product launches and product development schedules. Over the past two and a half years NCsoft has launched six major titles into the North American market and has grown with each title launch."
Although NCsoft has yet to officially confirm which roles have been cut as part of the restructuring plans, the company is keen to point out that development on its forthcoming MMO, Tabula Rasa, is continuing as normal and that no other divisions have been affected.
"NCsoft has reduced its 300 person workforce in Austin by approximately 70 people," the company statement continued.
"This decision has no impact on the schedules of any projects currently in development and service to NCsoft's current games will continue without interruption."