South Korean games publisher Krafton recently announced its transformation into an “AI first” company, which typically means that human jobs are about to go on the chopping block. To that end, the company is now trying to slash its workforce by offering voluntary resignations, according to a report by Eurogamer.
Krafton is a giant company with tentacles in numerous development studios, including the folks that make PUBG and Subnautica. The organization says this isn’t a plan to lay off its human workforce, but will “support members in proactively designing their growth direction and embarking on new challenges both inside and outside the company amid the era of AI transformation.” Yep. Those are certainly words.
The company also says it will “support members in autonomously deciding whether to continue the direction of change internally or expand externally.” That’s corporate speak for “my way or the highway.”
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CFO Bae Dong-geun said during a recent earnings call that “individual productivity must increase at the company-wide level.” Oh yeah. It’s worth noting that Krafton recently noted record profits. It looks like these profits will not be going to the staff, but rather will be funnelled into large-scale investments in AI. It’s a tale as old as time, or at least modern AI.
The company plans to “automate work centered on agentic AI” including the development of an “AI-centered management system.” It’s freezing all hiring except for those “developing original intellectual property and AI-related personnel.”
Agentic AI systems have, so far, proven to be underwhelming when tasked with taking the reins. A recent MIT study noted that 95 percent of these efforts fail. Another study predicts that 40 percent of agentic AI projects will be cancelled by the end of 2027. In other words, good luck in your forthcoming endeavors, Krafton. You’re gonna need it.
