The company told GamesIndustry International that 80 employees in the Hamburg office and more than 40 in the San Francisco office are affected by the decision.
The company will no longer develop games in the US.
"We have seen that developing games in the US is not really the most efficient way for us at the moment," Hubertz told GamesIndustry International.
"The games that we have developed in the last two years haven't been that successful, and the San Francisco area and Bay Area is quite a competitive market. San Francisco is, after New York, one of the most expensive cities you can live in in the US, so the people are quite expensive."
Heiko Hubertz promised that none of the company's current projects will be affected by the job cuts, and the company will continue to make new games. Hubertz himself will move to the position of executive chairman of the company's supervisory board as of the year's end. His replacement will be announced at that time.
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