Bandai Namco is said to be reducing its workforce due to the cancellation of "several" projects

The workforce at Bandai Namco is reportedly being reduced.

Source Bloomberg indicates the reduction follows the abandonment of several projects due to insufficient demand.

GamesIndustry.biz has reached out for a statement but has not yet received a reply.

According to insiders cited by Bloomberg, the Tokyo firm is employing a typically Japanese strategy to downsize, allegedly placing employees in idle spaces to encourage voluntary resignations. These sources requested anonymity due to the sensitive nature of the information.

Reports suggest 200 out of 1300 staff members have been relocated to these so-called "expulsion rooms" or "oidashi beya," leading nearly half of them to resign voluntarily.

Bandai Namco has stated that its intention "is not to make employees leave."

A Bandai Namco representative explained, “The choice to cease development on certain games comes from thorough evaluations of current circumstances."

"While some staff might need to wait before being reassigned to new projects, we do proceed with these assignments as new opportunities arise. Bandai Namco Studios does not have 'oidashi beya' rooms intended to pressure staff to resign voluntarily."

The company also refutes claims from an unnamed website.

In related news, earlier today, we reported that Riot Games confirmed the decision to cut 32 roles on League of Legends.