The CEO of Embracer previously declared that the widespread removal of workers across their many owned studios had come to an end. However, recent events have proven otherwise, as the company continues to enforce layoffs and shut down studios. One such studio that has been hit hard is Lost Boys Interactive, a support studio for Diablo IV and Tiny Tina’s Wonderlands. Just last week, a total of 139 employees were laid off, amounting to over half of the studio’s workforce. The affected roles range from junior VFX artists to senior QA analysts, with even higher positions like an executive producer and a creative director being impacted. Prior to the layoff, the studio had over 200 workers, according to its website.
In response to the layoffs, CEO Shaun Nivens expressed the challenges faced by Lost Boys Interactive in making the decision to reduce their workforce. Nivens emphasized that such decisions are never taken lightly and are only made after exploring all other alternatives. The studio, known for providing QA and art support to client developers, attributed the layoffs to “shifting market conditions”. Lost Boys Interactive has previously collaborated with companies like Amazon and worked on popular games such as PlayerUnknown’s Battlegrounds. This is not the first time the studio has faced job cuts, as they had already undergone layoffs earlier this year after being acquired by Gearbox.
Nick Barone, an art director who survived the previous round of layoffs at Lost Boys Interactive, shared his sympathies for those affected. However, even Barone was not spared in the recent round of job cuts. In a heartfelt post on LinkedIn, he expressed his sadness at seeing talented individuals being let go and offered his support to those in need. The repeated layoffs at Lost Boys Interactive reflect a larger trend within the gaming industry, as companies like Embracer resort to cutting jobs to adjust to market conditions.
Embracer’s actions, including laying off more than 8% of its global workforce and canceling projects like a potential Red Faction sequel, point to a deeper issue within the gaming industry. The company’s aggressive mergers and acquisitions strategy has led to a series of layoffs across its studios, despite claims from the CEO that the worst was over. The gaming industry, as a whole, has been plagued by mass layoffs in recent years, impacting professionals at all levels of the industry.
The unfortunate reality of layoffs in the gaming industry continues to affect companies and employees alike. The case of Lost Boys Interactive is just one example of the challenges faced by studios in an ever-changing market. As the industry grapples with economic uncertainties and shifting priorities, it is crucial for companies to prioritize the well-being of their employees and explore alternative solutions to layoffs.
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