Don’t Nod, the developers behind Life Is Strange and the upcoming Lost Records: Bloom & Rage, is facing layoffs. The French studio announced on Wednesday that it was launching a “reorganization project” that could affect “up to” 69 jobs.
“Amid deteriorating results, and despite the actions already taken, the company is now compelled to consider a reorganization project to safeguard its competitiveness in an increasingly demanding and competitive ecosystem,” Don’t Nod said when reporting its latest earnings.
“This project could impact Don’t Nod’s workforce in France and may affect up to 69 jobs. An initial exchange took place today with the employee representative bodies, and an information-consultation process with these same bodies will subsequently be initiated regarding this project.”
The studio added that the reorganization is aimed at strengthening the role of its editorial committee to meet market expectations, restore organizational agility, align technologies for better efficiency, and secure the company’s financing.
“Management is committed to fostering dialogue with employee representatives, with the aim of reaching agreements on accompanying social measures, including the possibility of a voluntary redundancy plan, should the project be adopted,” Don’t Note said.
Despite the falling revenue and reduction in staff, the company says ongoing development of Lost Records: Bloom & Rage as well as two other games will continue.
Don’t Nod reported an 11% decline in revenue for the first six months of 2024. It also announced a write-down of €24 million ($26.1 million) due to the poor performances of Jusant and Banishers: Ghosts of New Eden. Another €7.6 million ($8.3 million) write-down was made due to the temporary pause of games P12 and P13 in order to “prioritize resources and maximize the chances of success for the most promising titles at present.”
There was no mention as to what areas of Don’t Nod would be impacted by the layoffs, or when they would take place. Insider Gaming will have more when that information becomes available.
For more Insider Gaming, read about the layoffs happening at Intel’s Oregon facility as it continues its cutback efforts. And don’t forget to sign up for our weekly newsletter.
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