
The cuts reduce payroll pressure while reallocating resources toward AI capabilities, reshaping Krafton’s competitive position in a rapidly evolving gaming market.
Krafton’s January 2026 headcount fell by 271 employees after the company completed a voluntary resignation program that began in late 2025. The initiative, part of the firm’s newly announced “AI First” strategy, offered departing staff up to 36 months of salary and generated roughly KRW 40 billion in one‑time costs recorded in the first quarter. While the total number of exits was lower than the original target, the distribution was uneven: headquarters saw 158 resignations, whereas the AI‑focused subsidiary ReLU Games retained all 38 staff. The move signals a deliberate reshaping of the talent pool to align with emerging AI‑driven development priorities.
The attrition rates varied sharply across Krafton’s studios. RisingWings, responsible for titles such as *Defense Derby* and *Archer King*, lost 41 of its 102 employees—a 40 % turnover that threatens ongoing support and future updates for its games. Bluehole Studio, preparing *TERA 2*, shed 51 workers, representing a quarter of its workforce, potentially delaying its release schedule. In contrast, smaller studios like Dreamotion and 5minlab experienced modest losses under 10 %. These disparities suggest that the voluntary program was more attractive—or perhaps more necessary—in units facing higher operational costs or strategic pivots.
Krafton’s restructuring mirrors a wider shift in the gaming sector, where publishers are reallocating resources toward artificial‑intelligence tools, procedural content generation, and data‑driven live‑service models. By trimming headcount and incentivizing exits, the company reduces payroll overhead while freeing capital to invest in AI talent and infrastructure. Investors will watch how quickly the remaining teams can translate AI capabilities into new revenue streams, especially as competitors like Epic Games and Ubisoft accelerate similar initiatives. The success of Krafton’s “AI First” agenda will hinge on maintaining development momentum despite the talent drain and on delivering commercially viable AI‑enhanced titles.
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