Rockstar Vienna Closes Its Doors

slashflood writes "Rockstar has unexpectedly closed its Rockstar Vienna development office, particularly known for its Grand Theft Auto Xbox conversion, laying off more than 100 employees. Confirmation has come in the form of a weblog post by Rockstar Vienna employee Jurie Horneman: 'This morning, as I came into work, I was greeted by security guards. It turned out Take-Two has closed their Rockstar Vienna office, effective immediately, 'due to the challenging environment facing the video game business and our Company during this platform transition'.'"

Comments

Not such a hasty layoff.

[Kerr]

As posted by tobe in the comments section of the blog mentioned above.

Well, a couple of notes: Austrian labor law basically doesn't allow one to put people on the streets right away. We're getting paid for a while yet. From what I've seen and heard, the two founders of the studio are bending over backwards to make this process more humane than is absolutely required. We did receive information on possible jobs in other T2 studios, on recruiters, etc. It's not the most lavish process, but it's something.

I think the way the layoff was handled makes sense, within the context of a typical public company. You want to make the transition quick - it'll be a shock anyway, so why not make it as short as possible? Imagine if you'd known about it for weeks but couldn't have told anyone... terrible. You want to make sure people don't do anything stupid and you want to protect your assets, hence the security guards. It's assuming the worst of people, but at least you're safe.

On a higher level, you want to make sure the company is run efficiently, and you want to be seen running the company efficiently by shareholders. Capitalism at work - T2 opening a studio in Shanghai fits nicely somehow.

Naturally, down in the trenches it feels different, and it would've been nice to work for a company that handles this differently. But very few do.

The only criticism I can make is that this is a very drastic solution - if there was a problem, couldn't this have been foreseen earlier, and dealt with differently?

This guy adds a lot that the article, and blog miss out. It doesn't make the news any better, especially to the ex-staff of rockstar vienna, but concerning employment law, damn; am I glad to live in Europe.
A further comment claimed that in America, companies have the right to lay you off, and stop your pay -tomorrow-
Surely that isn't right?

Re:Not such a hasty layoff.

[badasscat]

A further comment claimed that in America, companies have the right to lay you off, and stop your pay -tomorrow-
Surely that isn't right?

It depends, as others have said. But one thing nobody has said is that you are eligible for unemployment insurance in this situation, which lasts for six months. How much this is actually worth depends on the state, and it's typically some percentage of what you were making at your job up to a certain maximum, but it is generally always enough to get by. There are various formulas states use to calculate this, designed to average various variables that come into the real cost of living.

When I was laid off in 2001 (after the dot.com bust), I went from a $30,000 per year job (I was just out of college so wasn't making much) to $405 a week on unemployment. That's an annual pay cut of about 30% if you figured it out by the year. Anyway, even in NYC, $405 per week is enough to live on, provided you've got a reasonable savings to fall back on. The idea isn't to keep paying your wage while you sit on your duff; the idea is to keep you sheltered and eating until you can find another job.

Most states are "at will" states, meaning either side can terminate employment at either time. It's a tradeoff. You work as long as the company needs you - or as long as you need the company. This is not necessarily as bad as it seems, because it's led to a culture where those who get laid off can, provided they're skilled enough, get new jobs fairly easily. So can those who quit simply because they don't like the company they work for. There is no stigma attached to getting laid off or quitting, and in my case, and I suspect that of many others, the job I got after being laid off paid significantly more than my previous job.

In some countries I know of (Japan, for instance), it is very, very difficult to get a new job after getting laid off because companies assume it was for performance reasons. Firing people is uncommon there - rather than fire you or lay you off, they will stick you in a room by yourself until you quit - so anyone who's laid off has a real stigma attached to them. That's not true in the US, where people move from job to job as they or their companies see fit, and that's led to a mobile workforce where the skilled really generally do rise to the top faster than they would have otherwise, because if they're dissatisfied with their work or their pay, they're free to shop themselves around.

It's definitely a different philosophy than some European countries, where it's assumed that corporations owe a debt to their workers. I understand that philosophy - the Darwin-like system we have in the US can be very difficult, and does tend to weed out those who can't hack it and ruthlessly grinds them down into the dirt. But if you do make that effort to continue honing your skills and continue to gain experience and knowledge, you can rise faster and open more doors for yourself in a system like we have in the US.

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Re:Jack wins?

[Hannah E. Davis]

No.

Rockstar North is presently developing a new GTA that will be simultaneously released for the 360 and the PS3, and Rockstar Vancouver remains hard at work on Bully, one of Mr. Thompson's favourite targets.

If one of Rockstar's major "murder simulator" dev studios was shut down, I could see it as a victory for Mr. Thompson, but Rockstar Vienna was known for mere "Xbox conversion."