Nexon America is making layoffs to pursue ‘exciting’ IP growth strategy

Nexon America has made an undisclosed number of layoffs. In a statement sent to Game Developer, the company said the cuts are the result of a re-organization plan that will enable the formation of a new Western Development Group.

Nexon is known for developing titles like Maplestory and Dave The Diver. Earlier this month, the company converted subsidiary studio Mintrocket into a full corporation to enable “faster decision making” and implement “simplified business procedures.”

Nexon America was established in 2005 and provides online and console gaming services for markets outside of Asia. A Nexon spokesperson said the layoffs will impact a “small number” of employees.

Nexon’s long-term IP growth strategy

“Earlier this month, our new CEO Junghun Lee outlined a long-term IP Growth Strategy for both new games and extensions on existing franchises like MapleStory. A key element of the initiative is hyperlocalization—a strategy for hiring teams to adapt our games to match the tastes of local players in large markets like Europe and North America. A big step in this process is the establishment of the Western Development Group here in Los Angeles, led by Nexon veteran Hanbyeol Oh,” reads the statement.

“Unfortunately, the re-organization includes the elimination of a small number of roles, with severance offered to those leaving. However, Nexon America is now hiring to fill out the new development team, including engineers and designers. It’s an exciting time at Nexon America and we look forward to sharing more on our plan.”

Outlining its new growth strategy during a recent Capital Markets Briefing, Nexon said it wants to increase revenue and operating income to  ¥750 billion ($5.2 billion) and ¥250 billion ($1.75 billion) by 2027 by pursuing an IP growth initiative that will deliver “snowball growth.”

“Nexon’s highly advanced Live Game Operations capability has provided steady, if non-linear growth for the past thirty years,” said Nexon president and CEO, Junghun Lee. “With this as a foundation, we are centralizing our organizational structure around an IP Growth Initiative which can snowball growth within our established IP and develop new blockbusters.”

Game Developer has asked Nexon for more information about the layoffs.