Nexon intervened with layoffs

Key things

Nexon America is laying off workers to establish a “Western Development Group” as part of a new strategy, according to a report.
The company aims to hyper-localize games for specific markets such as North America and Europe.
Nexon is trying to diversify its gaming portfolio.

Nexongame owner like Dave the diver and First offspringis reportedly set to cut jobs in its US office. Based in Japan, Nexon is originally a South Korean developer-publisher that started business back in 1994.

Over the past few years, a number of layoffs across the gaming industry have affected many people's livelihoods. Even market leaders such as PlayStation have not escaped the ongoing wave of layoffs. From small developers like Surgent Studios to established stakeholders like Insomniac Games, various kinds of game companies have borne the brunt of tough economic conditions and restructuring needs. The latest victim of this brutal wave seems to be one of Nexon's offices.

Nexon America has laid off an undisclosed number of employees, according to a report by Game Developer. The dismissal was due to First offspring the creator's decision to start a reorganization plan to help establish a “Western Development Group” under the leadership of company veteran Hanbyeol Oh in Los Angeles, USA. While the exact number of people affected is unknown, a spokesperson reportedly confirmed that only a “small number” of employees will be affected by the layoffs. Those leaving the organization were offered severance pay, according to a statement shared with the source, while Nexon America began hiring for new roles, including engineering and design, as part of the next phase of its plans.

Nexon lays off employees in its US branch as part of its new strategy

According to the source, Nexon is trying to prioritize hyper-localization to better suit players in key markets such as North America and Europe. The move is part of CEO Junghun Lee's long-term intellectual property growth strategy, which places importance on new and existing franchises such as MapleStory series. At a recent event, they shared their vision for Nexon's future, which apparently aims to inspire “snowball growth.”

FROM Dave the diver in 2023 up to First offspring in 2024, Nexon has made important additions to diversify its game portfolio in recent years. Earlier this year, Nexon made another major business decision by fully taking over the subsidiary studio and Dave the diver developer Mintrocket in favor of speeding up the development process. The latest call to restructure Nexon America and build a local group for major markets appears to be another way to shake things up to align with the CEO's long-term strategy.