NCSoft reduces the size of its bloated organization… Recommended resignation in progress

NCSoft reduces the size of its bloated organization… Recommended resignation in progress

[디지털데일리 문대찬기자] NCSoft (hereinafter referred to as NC), which began work on improving its structure last year, appears to have begun its first workforce reduction under the co-representative system.

According to the gaming industry on the 24th, NC has recently been individually notifying non-development and support organizations of recommended resignations. The exact size of the restructuring is unknown.

Employees who have been notified of recommended resignation will begin retirement procedures as early as next month. NC reportedly plans to pay them 3 to 6 months’ worth of salary along with severance pay.

NC did not make an official statement regarding the scale of personnel reduction. An NC official declined to comment, saying, “We are internally reviewing various measures to improve our constitution, but nothing has been confirmed.”

NC has been criticized for being too large an organization compared to its performance. It had a total workforce of 4,789 in 2022, but exceeded 5,000 in 2023. The average labor cost per person is about 140 million won.

However, sales per person last year were 350 million won, a significant drop compared to 2022 (500 million won). NC’s operating profit last year was 137.2 billion won, a sharp decline of 75.4% compared to the previous year.

Since last year, NC has begun to improve management efficiency by reorganizing some businesses, including entertainment and character. Last February, it closed its subsidiary Entriv Soft.

NC Co-CEO Park Byeong-moo previously said, “This year, we will strengthen management efficiency so that all departments can complement each other to strengthen core competitiveness,” but distanced himself from indiscriminate restructuring.

Appointee Park also said, “Management efficiency is not based solely on financial numbers. We plan to select and focus on improving the efficiency of overlapping functions while strengthening our core competitiveness. He warned, “Efficiency that focuses only on numbers destroys the roots of a company’s competitiveness and potential.”

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