Krafton, PUBG Developer, Experiences Crisis with Salary Freeze and Reduced Remote Work

By | Niranjan Bhargav 9 Mar, 2023

South Korean game developer Krafton is reportedly facing a financial crisis amid the global recession. The company, known for creating the popular battle royale game PUBG, confirmed in an internal communication that some organizational leaders would be receiving a salary freeze, while work-from-home arrangements would be reduced.

What’s the latest announcement?

The company’s latest announcement follows a string of layoffs and salary cuts at other gaming companies, such as Microsoft’s 343 Studios, Bethesda, and Riot Games. While Krafton has not announced any layoffs, the salary freeze and reduced work-from-home arrangements are concerning for the company and its employees.

Salary freeze crisis:

Krafton’s stock has also been struggling in the wake of the company’s recent financial difficulties. The release of The Callisto Protocol, a survival horror action game, was expected to boost the company’s financials, but the game has reportedly failed to meet expectations. Krafton aimed to sell five million copies of the game, but only two million have been shipped so far.

This has led to a drop in Krafton’s stock value, which has been on a downward trend since its Initial Public Offering (IPO) in August 2021. At the time, Krafton had one of the largest IPOs in South Korean history, raising $3.8 billion, but the shares were listed at 9.9 percent lower than the IPO price and have continued to fall since then.

Krafton is facing difficult times as the gaming industry experiences the effects of the global recession. The company’s stock value has fallen significantly, and the recent financial difficulties have resulted in a salary freeze and reduced work-from-home arrangements for some organizational leaders. It remains to be seen how Krafton will navigate these challenges and what the future holds for the company.