Phoenix Labs has recently revealed that it will be letting go of most of its workforce, marking “unfortunate but necessary changes” within the company. Known for creating popular titles like Dauntless and Fae Farm, there’s uncertainty about how these layoffs will affect these games moving forward.
Since 2023, the gaming industry has been grappling with widespread layoffs and restructuring, and Phoenix Labs is the latest to feel the impact of this harsh reality. Their announcement aligns with many others from both major and indie developers over the past year, sparking concerns about ongoing instability within the sector.
Throughout the summer of 2023 and beyond, countless video game companies have been trimming their staff. With Microsoft, Embracer Group, Bungie, Sega, and others having already enacted significant layoffs last year, it seems this trend is set to continue into 2025. Phoenix Labs is among the first to take this step in 2025, joining a long list of companies slashing jobs.
Through a LinkedIn post, Phoenix Labs confirmed it will be laying off most of its studio due to these unavoidable changes, expressing gratitude for the contributions of the departing employees. While it’s leaving many worried about the future of Dauntless and Fae Farm, the company assures that more information will be forthcoming within a few weeks about what lies ahead for these titles.
In a broader context, Phoenix Labs joins an extensive list of gaming companies in the throes of extensive downsizing. Just days before their announcement, Ubisoft shuttered a significant studio, cutting 185 jobs. Likewise, Rocksteady, the team behind Suicide Squad: Kill the Justice League, has also made headlines with another wave of layoffs in January, leaving the industry to wonder when this cycle of instability might ease. While it’s unclear if other studios will face similar challenges through 2025, the pattern so far suggests the upheaval may not be over just yet.
Discussions continue about the driving forces behind these drastic “restructuring” measures seen across so many game development studios. There are growing concerns about the long-term repercussions of these layoffs, potentially outweighing any immediate financial benefits. Phoenix Labs’ current predicament serves as yet another example in this troubling trend, and it’s anyone’s guess which studio, if any, will be next.
