Crytek Denies Being on the Verge of Bankruptcy
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Undying
Oh, my i'm smelling a lawsuit. There you go, more money! 😀
j/k this is good news i guess.
Rich_Guy
Would they really come and say 'yeah, were going down the pan' though :P
Veeshush
^ This
At the bottom of the article it's asking any Crytek employees to email them any information:
http://www.eurogamer.net/articles/2014-06-23-crysis-developer-crytek-claims-bankrupt-report-is-false
GhostXL
Well this is good news. I heard it was denied, looks like it was true.
Loobyluggs
I think that's what PR departments call a "denial-denial".
Two negatives make a positive, they are in serious trouble.
Clouseau
THQ was on the verge of bankruptcy if their planned buyout did not go according to their wishes. Crytek is not there yet. There has been plenty of examples of companies betting everything and winning the day. Bad press is more damaging than the reality of any situation.
Who cares if there is any truth to the article as long as the desired effect is achieved...correct? Journalism is not what it used to be.
Loobyluggs
Agreed, hence why companies prefer the free to play model and micro transactions, like league of legends making half a billion last year for zero loss to pirates...
FULMTL
Nanosuits with hats. F2P logic.
Rich_Guy
30 employees laid off at Crytek UK.
Clouseau
Laid off and what is being reported is very different. Thirty plus people have left Crytek since 2011. This is what is meant by bad press is more damaging than the reality of the situation.
sykozis
Layoffs don't necessarily mean that a company is in financial trouble. Maybe those 30 employees weren't necessary? Most companies look for ways to maximize their operating budget, even when financially stable.
Loobyluggs
That's 23% of the workforce.
That is significant - imagine Microsoft laying off 23% of the workforce.
sykozis
A "local" company laid off almost 50% of it's workforce 2 years ago. That company was and still is financially stable. It's actually a common practice for several companies in my area to lay off large numbers of workers every few years.
It's common practice for all companies to look for ways to maximize their operating budget by minimizing unnecessary staff.
Clouseau
Also, remember, that figure is derived by going back to the year 2011. How much of that thirty plus figure come from "recent" layoffs? None of the articles are stating that figure. All the layoff articles amount to journalists wanting to up traffic to their employers site. It's nothing more than a fluff piece. They are a private company and therefore have no bounds to reporting requirements. Only upper management and their bankers know the real picture.
PhazeDelta1
Well THQ denied being in financial troubles too. First they started with layoffs, then news came out they were going bankrupt. We'll find out the truth with Crytek soon enough.
Loobyluggs
If companies repeatably lay off staff in your area, I'd move to another one where perhaps the management is not so flawed.
Clouseau
True enough, the truth will come to light soon enough. The game is deny till you cannot deny it any longer because the filing for bankruptcy protection states it all. If the restructuring plan is approved, their IP suffers less damage than it would in a fire sale. Owners are owners and they want a maximum return on investment.
@ Loobyluggs: Aerospace industry functions similarly like that all the time. Once a project is finished, all the staff associated with that project is laid off. Only reason some or all of that staff may continue on is because they were picked up by another project. All depends on how a particular industry behaves and functions.
Loobyluggs
That's contract work - you sign an agreement for a period of time linked to a calender or project.
Clouseau
That is exactly what Sykozis described - contract/project based work model as far as staff is concerned.
F1refly
Maybe if they would create a good game *cough*
