Bandai Namco's Strategic Cuts: Workforce Reduction and Game Cancellations

Bandai Namco Implements Job Cuts Following Game Cancellations

Bandai Namco is adjusting its workforce after cancelling several game titles due to a slump in demand. Reports indicate that the Tokyo-based company is utilizing a traditional Japanese method of reducing staff, known as oidashi beya, where workers are moved to rooms with no assigned tasks.

Company’s Hiring Approach

Since April, Bandai Namco Studios has reassigned around 200 employees to these rooms, with nearly 100 opting to resign thus far. As this trend continues, additional departures are anticipated in the near future.

• Job Cuts: An expected strategy in response to market dynamics.
• Employees may seek other roles while remaining under observation.
• Some employees await new project assignments during this period.

Despite these circumstances, Bandai Namco emphasizes that it is not intentionally pressuring employees to leave. A representative clarified that their decisions are based on comprehensive evaluations rather than coercion.

Industry Landscape

Like its peers, Bandai Namco faces mounting pressure to cut costs following a post-pandemic decline in gaming time. The company has incurred JPY 21 billion ($141 million) in writedowns over three quarters as it navigates market challenges.

This adjustment includes the cancellation of major projects and is reminiscent of moves by other industry players, such as Square Enix and Sony, which have also terminated underperforming titles.

For more information, readers are encouraged to follow further developments in Bandai Namco's strategies as they unfold.