South Korean publisher Krafton announced it’s transforming into an “AI first” company last month, and is now reducing human jobs with a voluntary resignation scheme.
The move comes after the company recorded record-breaking performance in its most recent financial quarter and has announced large-scale investments of over 100 billion won each in the Indian market and AI sectors, as reported by Business Korea.
The publisher – known for the likes of inZOI, Subnautica, and PUBG – maintains this scheme is not a layoff plan for workforce reduction. “The core purpose is to support members in proactively designing their growth direction and embarking on new challenges both inside and outside the company amid the era of AI transformation,” said a company representative, adding “the company plans to support members in autonomously deciding whether to continue the direction of change internally or expand externally.”
Krafton announced its “AI First” plan back in October. “Starting today, Krafton will automate work centered on agentic AI,” said CEO Kim Chang-han. “We will begin in earnest an AI-centered management system where members focus on creative activities and solving complex problems.”
The company is also freezing hiring “excluding organisations developing original intellectual property (IP) and AI-related personnel”, as explained by CFO Bae Dong-geun during a recent earnings call, adding “rather than reducing costs through AI First, individual productivity must increase at the company-wide level.”
The news follows another South Korean developer and publisher, Nexon, whose CEO Junghun Lee believes “it’s important to assume that every game company is now using AI”. Nexon is the publisher behind Embark Studios’ extraction shooter Arc Raiders, which uses AI for voice work.
It’s not just Korean companies, either. According to a report from the organiser behind the Tokyo Games Show, over half of Japanese game companies are using AI in development.
What’s more, Final Fantasy maker Square Enix recently announced it wants 70 percent of its QA work to be handled by generative AI by the end of 2027, ahead of layoffs in its western offices.