Layoffs Hit Neverwinter Developer Cryptic Studios

Cryptic Studios layoffs

This week in gaming is ending the same week as it began: layoffs. Cryptic Studios, the developer behind Star Trek Online and Neverwinter, is the latest company to see layoffs.

Founded in 2000, Cryptic Studios was acquired by Embracer Group in December 2021. Since then, the company has been primarily responsible for maintaining and updating Neverwinter.

“Unfortunately, I’m here to report that there are a lot of amazing people from Cryptic Studios who are joining the list today,” lead environment artist Scot Boyd posted on LinkedIn.

Senior community manager Mike Fatum added: “So many of the best people I know were let go from Cryptic Studios today.”

In a statement given to, a spokesperson for the company said that the changes were due to planned restructuring by Embracer Group.

“As part of the Embracer Group’s comprehensive restructuring program, Cryptic Studios will now operate under DECA Games,” they told GIbiz. “In addition to this organizational change, our commitment to Embracer’s directive to reduce costs requires us to undertake difficult personnel changes, including separating from some team members.

“Cryptic Studios will provide job assistance and support those impacted to smooth this transition. Cryptic remains dedicated to supporting its cornerstone free-to-play games and the communities behind them.”

What do you make of this new round of layoffs in the gaming industry, this time at Cryptic Studios? For more Insider Gaming, check out the latest on the recent Bungie layoffs and what it means for Destiny 2 The Final Shape.