Life Is Strange Dev Hit by Layoffs Following Revenue Decline

Following Life Is Strange and Remember Me developer DON'T NOD’s revenue decline in the first half of 2024 comes sad but unsurprising news of its layoff, which could affect up to 69 employees. 

Oskar Guilbert, Chairman & CEO of DON'T NOD, said in a press release that the reorganization plan is expected to “set DON'T NOD on a new development trajectory” and “ensure the company's long-term future.” He also emphasizes that “securing our company's resources and restoring its ability to perform more in an increasingly competitive and selective industry is extremely necessary."

In addition to the plan to reduce the workforce, the studio also put two projects on hold and wrote down €7.6 million “to prioritize resources and maximize the chances of success for the most promising titles at present.” They promised to continue the development of Lost Records: Bloom & Rage, a narrative-driven adventure game, and strive to release the first episode in February 2025. 

The company also wrote down €24 million for Jusant and Banishers: Ghost of New Ede, whose estimated future sales, in a “particularly saturated market,” would not likely “generate sufficient revenues to cover all the development costs capitalized for these two games.” 

Last month, DON'T NOD said that despite an excellent critical reception, Jusant and Banishers: Ghost of New Ede failed to meet its expectations in terms of commercial success. This resulted in an 11% decline in operating revenues to €14.6 million in the first half of 2024 compared to €16.5 million in the same period of 2023.

Even though it’s noted by the studio that there was an initial exchange about this decision with employee representative bodies, STJV, the French union of workers in the video game industry, has blamed the company for not offering the topic or any relevant document of the meeting, where the dismissal was announced, to the workers representative in advance and throwing the layoff plan, which affects 29% of its workers, "with a sweep of the hand," thus breaking the law. A while ago, the union encouraged employees from all of Ubisoft’s France entities to strike in October over the company’s request to return to office, which was sent without any consultation with the workers’ representatives.

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