Nexon America, the US-based subsidiary of South Korean gaming giant Nexon, has announced an undisclosed number of layoffs as part of a reorganization plan. The move aims to establish a new Western Development Group, focusing on hyperlocalization and adapting games to suit Western markets.
Reorganization and New Growth Strategy
The layoffs are part of Nexon’s long-term IP growth strategy, outlined by CEO Junghun Lee. The plan involves:
1. Hyperlocalization: Hiring local teams to adapt games for European and North American markets.
2. Establishing the Western Development Group in Los Angeles, led by Nexon veteran Hanbyeol Oh.
3. Increasing revenue and operating income to ¥750 billion ($5.2 billion) and ¥250 billion ($1.75 billion) by 2027.
Impact on Employees
A Nexon spokesperson confirmed that a “small number” of employees will be affected, with severance packages offered to those leaving. However, the company is now hiring engineers, designers, and other positions to fill out the new development team.
Nexon’s IP Growth Initiative
Nexon’s president and CEO, Junghun Lee, emphasized the importance of centralizing the organizational structure around the IP Growth Initiative. This strategy aims to:
1. Deliver “snowball growth” within established IP.
2. Develop new blockbusters.
Background
Nexon America was established in 2005 and provides online and console gaming services outside Asia. The company is known for titles like MapleStory and Dave The Diver. Earlier this month, Nexon converted subsidiary studio Mintrocket into a full corporation to enhance decision-making and simplify business procedures.
Response
Game Developer has reached out to Nexon for further information on the layoffs. The company’s statement emphasizes its commitment to growth and innovation, despite the restructuring.
Nexon America Undergoes Layoffs Amid Reorganization and New Growth Strategy
