Gaia Online, other gaming companies make cuts to prepare for 2009

I was browsing the net as usual to keep myself abreast of all the game industry news when my friend and fellow Gaian told me about a journal he found on Gaia Online announcing that Gaia was laying off members of its staff. I couldn’t find that journal but at any rate that’s simply horrible with the holidays just around the corner. But to make sure I’m reporting the truth and nothing but the truth I contacted Kate Hourihan of Mullen PR to clarify what is going on.

“Hi Lucy,

Out of respect for those impacted by the staff reductions, we’re unable to comment on specific employees. With the current economic conditions we found it
necessary to turn to staff reductions and other operating cost cuts as we head into an uncertain 2009. Above all, our priority is to continue to deliver an exciting experience to our users and the measures we’ve taken will enable us to do that.

Best, Kate”

According to WorldsInMotion, Gaia Online released 36 staff members. But Gaia is not the only gaming company tightening their belts according to Nobosh.

Companies inlcuding Midway Austin Games shaved 25 percent of its staff, WildTangent laid off 20 percent, Midways pinkslipped almost 200 and Electronic Arts shaved six percent of its staff to brace for the new year. Even LucasArts had to tighten its belts a bit and released more than 100 employees.

The current economy has shaken many other gaming companies and causes worry about staying afloat through 2009. In an article by Ray Poirier in Gaming Today, Poirier writes “Nearly every major gaming company has laid off workers in the current economic slump and so far the end isn’t in sight, nor is the impact on the various communities.”

In his interview with American Gaming Association President and CEO Frank J. Fahrenkopf, Fahrenkopf agreed and added, “These [gaming] complexes employ thousands and thousands of workers. And those thousands of workers buy cars, buy washing machines. So it’s a major negative impact on the communities where we do business when we have to cut back.”

Read [Worlds in Motion] Also Read [Gaming Today] Also Read [Kotaku] Site [Gaia Online] Site [Mullen PR]