[Update: Added Funcom confirmation]

Age Of Conan developer Funcom will reportedly cut 20 per cent of its workforce and delay the release of its new PC and Xbox 360 MMO, The Secret World, by several months.

The news was revealed in a stock exchange announcement on Tuesday, according to a Google translation of an E24 report. The site said that the Norwegian developer’s stock fell 18 per cent following the announcement.

Founded in 1993, Funcom currently employs over 320 staff across its offices in Norway, the US, China, and Switzerland. It has developed over 20 titles but is perhaps best known for its MMO Age Of Conan: Hyborian Adventures, which shipped over 1.2 million copies to retail in 2008.

In early September Funcom announced that it would be opening a new studio in Montreal, Canada to “take advantage of the great incentive programmes offered by the Quebec region”. E24 says that Funcom invited its 220 Norwegian employees to move to Quebec where up to 37.5 per cent of game development salary costs are reimbursed, and that the company plans to hire 100-150 people in Canada over the next 18 months.

As well as The Secret World, Funcom is also currently working on the Age Of Conan expansion Rise Of The Godslayer.

Calls and emails to Funcom had gone unanswered as of press time.

In a statement on its website, Funcom has confirmed its cost reduction plans:

"Funcom N.V has initiated a program of cost reductions, reductions in head count and use of forced leave (permittering) to better align the Company's operations to the current marketplace.

"Around 20% of the staff of the Company will be affected by headcount reductions or forced leave, mostly in the Company's Norwegian subsidiary.

"The Company's development of the Age Of Conan expansion pack and its preparations for launch in Korea will continue as planned, as will the preparations for the limited beta of its first free- to-play MMO scheduled to take place during Q4. The development of The Secret World will be some months extended due to the initiatives with even more focus on ensuring the delivery of a game that is fully in line with the high expectations amongst fans and gamers across the world."