Guild Wars” and “Guild wars 2” developer ArenaNet confirmed to employees it is planning substantial layoffs during meetings held throughout Thursday, a person who was there tells Variety.

While no official number has been announced by the studio, it is believed as much as 33% of the company could be let go – about 132 employees. ArenaNet currently employs around 400 workers.

Earlier today NCSoft West CEO Songyee Yoon e-mailed employees with the news, adding that the company will “cut costs across the organization” and merge ArenaNet and NCSoft’s publishing divisions, Kotaku reports. “Our live game business revenue is declining as our franchises age, delays in development on PC and mobile have created further drains against our revenue projects, while our operating costs in the west have increased,” she wrote. “Where we are is not sustainable, and is not going to set us up for future success.”

“The restructuring, cost-cutting, and strategic realignments are all being done to secure our tomorrow and to provide the foundation that will allow us to grow and acquire.”

In September 2018, NCSoft shut down its Carbine Studios developed MMO “Wildstar” developer, and would go on to reduce staff at the mobile game studio Iron Tiger in 2019. During the company’s financial earnings call this week, NCSoft announced an annual decline in PC revenue.

Variety has reached out to ArenaNet and NCSoft for comment.