Iron Galaxy has sadly announced new redundancies. The company says it’s downsizing amid layoffs across the games industry. The announcement comes directly from the company, which discusses how players are consuming games and states that publishers have different criteria for investing in development than in the past.
The company failed to specify how many redundancies were made in this latest restructuring. However, in early 2025, they let go of 66 employees, describing it as a last resort to keep the team together. Following the 2025 cuts, the company had lost 25% of its workforce. Moving forward, Iron Galaxy Studios will do its best to support team members impacted by their transition.
More on the Iron Galaxy Studios Restructuring
The LinkedIn post announcing the game development industry’s evolution focuses heavily on its evolution. Looking back to 2020 and the global pandemic as the genesis of change in the development industry, Iron Galaxy says people have been waiting 6 years to return to “normal.” However, in 2026, they say they are adopting a new position that accepts that industry changes are permanent.
Furthermore, they reflect on the 2025 cuts and remark that these painful decisions still need to be made, as it is impossible for them to sustain the current size of the team.
“Players consume games in new ways. Publishers have different criteria for investing in game development. This new normal has impacted all our partners. As Iron Galaxy adapts, we must make painful decisions about what we can be as a company. It’s impossible for us to sustain the team size that we’ve carried this past year, even after our downsizing from last year,” the post reads.
Iron Galaxy’s Legacy Thus Far
The developers, who co-developed the Spyro the Dragon remake trilogy and the Crash Bandicoot N-Sane Trilogy, also helped launch games like Overwatch and Fallout 76. They’ve also launched original titles such as Rumbleverse, a live-service, wrestling-themed Battle Royale, which closed down shortly after launch in 2022.
The post does not address its future in the games industry. Still, Insider Gaming will continue to bring you the latest news from Iron Galaxy Studios.
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