Summary

  • Phoenix Labs has announced that it will lay off the majority of its staff due to "unfortunate but necessary changes."
  • The developer is known for Dauntless and Fae Farm, and it is unclear how these games will be impacted by the news.

Dauntless and Fae Farm developer Phoenix Labs has announced that it will be laying off a majority of its staff, adding to the seemingly unending pattern of cutbacks and restructurings that have been bombarding the video game industry since 2023. The official statement from Phoenix Labs mirrors the dozens of announcements made by other triple-A and indie studios over the past year and a half, leaving many worried that the video game industry is still entrenched in tumultuous times.

Since the summer of 2023, thousands of employees have been laid off by video game developers and publishers, and it would seem that this unfortunate trend will continue into 2025. Major layoffs announced by Microsoft, Embracer Group, Bungie, Sega, and more rocked the industry last year, and now Phoenix Labs is among the first in 2025 to announce even more redundancies.

dauntless review bomb controversy explained
Dauntless' Review-Bomb Controversy Explained

The Monster-Hunter style RPG Dauntless was recently brought to Steam, but it's being bombarded with negative reviews on the platform.

1
By 

In an official statement shared via LinkedIn, Phoenix Labs has confirmed that it will be parting ways with "the majority of the studio" due to "unfortunate but necessary changes" at the developer. The statement explains that Phoenix Labs is grateful for the contributions of its staff and will be working to "support those affected." A previous round of layoffs at Phoenix Labs left many worried about the fate of the studio's games Dauntless and Fae Farm, and this new announcement has included a note that more details will be shared in the coming weeks regarding the future of those two titles.

Phoenix Labs Latest to Be Hit by Continued Industry Layoffs

Phoenix Labs joins countless companies to face major layoffs in recent years, adding to the continued struggles of the industry at large. Just a few days prior to the announcement by Phoenix Labs, Ubisoft closed down a major studio and confirmed 185 job cuts. Suicide Squad: Kill the Justice League studio Rocksteady also announced another round of layoffs earlier in January. Now with the cutbacks revealed at Phoenix Labs, many are once again questioning when the video game industry will find stability. It currently remains unknown if more layoffs will continue to hit studios through 2025 or if the onslaught will finally subside.

The seemingly relentless layoffs by video game companies remain entrenched in controversy, with audiences debating the true cause of such massive "restructuring" decisions across so many different studios. Some worry that the possible long-term impact of these layoffs could be worse than any potential immediate financial relief, though this remains pure speculation. As it stands, Phoenix Labs is the latest to be hit by the unfortunate layoffs trend, and it is unclear which studio, if any, will be next.

Image
Phoenix Labs
Phoenix Labs
Display card main info widget
Date Founded
April 1, 2014
Headquarters
Vancouver, British Columbia
Display card main info widget end
Checkbox: control the expandable behavior of the extra info