"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."
"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."
Krafton is transitioning to an AI-first model and offering voluntary resignations to reduce its workforce while portraying the move as supporting employee growth. The company will freeze most hiring except for roles focused on original intellectual property and AI-related personnel and plans to automate work through agentic AI and an AI-centered management system. CFO Bae Dong-geun emphasized that individual productivity must increase at the company-wide level. Krafton reported record profits but intends to channel gains into large-scale AI investments rather than staff compensation. Agentic AI projects have high failure and cancellation rates, raising questions about the plan's risk.
Read at Engadget
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