French game developer and publisher Don’t Nod – creator of the Life is Strange series and games like Remember Me, Vampyr, Banishers, Jusant and most recently Aphelion – seems as though it’s about to enter another round of layoffs.
In a company press release (via Resetera and translated by DeepL), Don’t Nod announced it’s “embarking on a transformation initiative” to deal with “profound changes in the economic conditions of the video game industry”. Layoffs aren’t specifically mentioned, but when referring to a meeting scheduled for Thursday 3rd September, Don’t Nod mentioned “a job-preservation plan” and “negotiations with the trade union representing employees”, which sounds ominous.
The full announcement reads:
“Independent video game publisher and development studio, announces that it is embarking on a transformation programme.
“Against a backdrop of profound changes in the economic conditions of the video game industry and its funding, coupled with a deterioration in the Group’s key economic indicators, the Company considers it necessary to adapt its operating model.
“In this context, the Management has convened the Company’s Employee Representative Bodies for a meeting scheduled for Thursday 3 September 2026. This is the first meeting under the information and consultation procedure with the Social and Economic Committee (CSE) prior to the possible implementation of a job-preservation plan. At the same time, the Management has entered into negotiations with the trade union representing employees within the Company.
“Following the Board of Directors’ meeting and the meeting of the Employee Representative Bodies, the Company will disclose to the market, on Thursday 3 September 2026 (after the close of trading), the key elements and next steps of the transformation plan, in accordance with its regulatory obligations regarding market disclosure.”
This isn’t the first round of layoffs Don’t Nod has suffered in recent years – having laid off staff from its Montreal office in Canada roughly a year ago – nor is this recent development a surprise. Don’t Nod revealed in June that it was close to running out of money following what seems to have been a disappointing performance for space-based action-adventure game Aphelion, released in April.
What this means for Don’t Nod going forwards going forward is hard to know. Will the studio be able to continue making games – and if so, of what size? It’s already reportedly scaled back plans for Project P14, its in-development game. We are trying to reach Don’t Nod for comment.
Eurogamer didn’t review Aphelion, nor did Rock, Paper, Shotgun, or IGN – our sibling sites. But Metacritic shows middling scores. The game itself followed a pair of astronauts being hunted across a planet called Persephone, with each of them presenting the player with distinct forms of gameplay. It launched on Game Pass, I believe, if you’re curious.
