Skydance Games Confirms Layoffs Following Warner Bros. Merger
The company described the changes as part of a reorganization and said they do not reflect on the work of the affected employees.
Skydance Games has undergone a wave of layoffs a month after Paramount Skydance acquired Warner Bros. Discovery.
A company spokesperson confirmed the cuts to Variety:
"As part of our ongoing efforts to position Skydance Games for long-term growth and success, we are implementing reorganization and operational shifts across a few areas of our business. We have stepped back and taken some time to consider where we are investing our efforts and have made the difficult decision to scale down some of our projects. As a result, there are roles impacted. This is not a reflection of the talent, dedication, or creativity of those affected and we are grateful for their contributions. We are committed to approaching the process with transparency, care and respect for those who are leaving the company."
As reported by Insider Gaming, multiple employees said layoffs began last week and impacted positions across the board. Allegedly, at least 30 people were let go, though the report suggests the real number may be higher. Senior gameplay engineer Rebecca Vessal said that, although she wasn't directly impacted by the cuts, most of her team was laid off.
"Skydance just lost a ton of great talent yesterday," wrote lead engineer David Vera, who wasn't affected by the layoffs. In the post, he named more than 20 impacted employees. "In this tumultuous climate, it's hard to find great talent and collaborators to help build your next team and game. The Skydance crew wasn't let go because of performance or problematic behaviors. These are all extremely worthy folks who were pushing themselves to the limit to try to make something they could all be proud of."
Associate design director David Ballard shared on LinkedIn: "My chapter with Skydance and Paramount came to an end today with a layoff. I'm super grateful for the opportunities I was given the past almost 4.5 years." He recalled his path at the company and added: "It's a sad day for several of my coworkers who were also affected."
Skydance Games is the publishing label of Paramount Games, a unified studio announced in June that brings together the development teams Skydance Interactive and Skydance New Media with Paramount’s intellectual property. Skydance Interactive was formed in 2016 to make VR games. Its work includes Archangel; PWND; original projects set in The Walking Dead universe, created in partnership with Skybound Entertainment; Arashi: Castles of Sin - Final Cut, created together with Endeavor One; and Behemoth.
On October 6, 2026, Paramount Skydance acquired Warner Bros. Discovery, and the merged company was named Skydance. After the deal, Skydance Games joined Warner Bros. Games' in-house studios, including Avalanche Software (Hogwarts Legacy), NetherRealm Studios, Rocksteady Studios, TT Games, and the WB Games teams in Montreal and Boston.
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