Phoenix Labs, renowned for developing Dauntless and Fae Farm, has announced a significant reduction in their workforce, citing “unfortunate but necessary changes” as the reason behind this decision. This announcement adds yet another chapter to the ongoing saga of layoffs and structural shifts that have plagued the video game industry since the start of 2023. With Phoenix Labs’ statement echoing the grim announcements from other big names and indie developers alike, there’s growing concern that the gaming world is still navigating turbulent waters.
Since mid-2023, a wave of layoffs has swept through video game companies, affecting thousands of employees. Unfortunately, it seems this trend isn’t stopping anytime soon. Last year, giants like Microsoft, Embracer Group, Bungie, and Sega made headlines with massive staff reductions. Now, as we step into 2025, Phoenix Labs is among the early casualties, contributing to the industry’s ever-growing list of redundancies.
In a LinkedIn statement, Phoenix Labs confirmed it is letting go “the majority of the studio” due to these pressing changes. They expressed gratitude for their team’s efforts and pledged to “support those affected.” Having gone through previous layoffs, employees and fans were already concerned about the future of flagship titles like Dauntless and Fae Farm. While the latest announcement offers a promise of more clarity in the weeks ahead, uncertainty looms over these beloved games’ futures.
Phoenix Labs’ recent cuts highlight a trend of instability within the industry. Just days before their announcement, Ubisoft shut down a major facility and slashed 185 jobs, while Rocksteady, the creators behind Suicide Squad: Kill the Justice League, initiated another round of layoffs at the start of January. These developments have fueled discussions about where the industry is headed and when, if ever, stability will return.
The ongoing layoffs across gaming companies remain a topic of intense debate, with many pondering the real reasons behind these widespread “restructuring” efforts. Some fear the long-term repercussions might outweigh any immediate financial gains—a notion that’s still speculative but deeply rooted in concern. As Phoenix Labs becomes the latest victim in this unfortunate series of events, all eyes are on the horizon, wondering which studio might face similar challenges next.
