Capcom Europe restructuring will reduce staff by half, merge some jobs

Capcom Europe will undergo a major restructure that will result in the redundancies of more than half its staff, reports MCVUK.

As part of the staff reduction, a number of jobs will also be merged. According to the report, Capcom's western branches have had a difficult year after many of its bigger titles failed to meet sales expectations.

"Following a restructure at its U.S. operation, Capcom's European organization is currently evaluating its structure to ensure it is in the best position to take advantage of the changing market conditions the industry is facing," a representative from Capcom said in a statement provided to Polygon.

Earlier this year, Capcom reported a significant drop in net income due to ongoing restructuring costs and an expected risein development costs as the company prepares for next-gen consoles. The month prior, the company canceled a number of unannounced games in development internally and at overseas studios because they were "no [longer] compatible with the current business strategy."

In September, the company reported a slight revenue increase despite poor game sales, and noted that January's DmC: Devil May Cry and last year's Resident Evil 6 both failed to meet their expected sales targets during the fiscal year.

One of Capcom's larger current projects in Deep Down, a randomly-generation dungeon crawling role-playing game for PlayStation 4. Back in April, the company announced it would "slow down" on re-releasing its old fighting games due to the lack of demand.