A continental-wide restructure resulting in a halved workforce is set to take place across Capcom's European business.
Capcom has confirmed to MCV that the company "is undergoing a major restructure following a difficult year" but did not provide specifics. The trade publication claims that "more than half of the European arm faces redundancy, with a number of jobs set to merge".
The Resident Evil and Street Fighter publisher has little to no development footprint in Europe, with the majority of its studio workforce located in Japan. More likely to be affected is the company's publishing, distribution and marketing network across the region.
However, the cut-backs may also affect how much Capcom can spend on development partnerships. In recent years the publisher has partnered with the likes of Paris based studio Don't Nod, as well as Cambridge outfit Ninja Theory.
In July, company executives announced fairly poor financial results. For the three months ending June 30, the publisher made £117 million in cash but could only convert that into £5.5 million profit.
At the same time, Capcom senior vice president Christian Svensson "voluntarily" resigned from the company as its US arm underwent a fresh round of redundancies.
Now a representative for Capcom Europe has openly stated the company must adapt to "changing market conditions".
"Following a restructure at its US operation, Capcom's European organisation 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," the statement read.
It is claimed, though not confirmed, that both DmC: Devil May Cry and Resident Evil 6 did not meet sales targets. Meanwhile, the publisher's latest major release, Lost Planet 3, didn't make the UK top 25 at launch. Remember Me entered at number three in the UK and quickly fell off the table.