Yet another video game developer has been hit by layoffs. This time it’s the Dauntless and Fae Farm developer Phoenix Labs, which posted its announcement regarding restructuring on LinkedIn late last night.
The statement goes as follows: “Today is an incredibly difficult day. After a long period of evaluating how to navigate our economic environment, we have to significantly restructure the company to pave the path for a strong future. We are reorganizing Phoenix Labs to focus on our best-in-class live service titles, Dauntless and Fae Farm, and serving their communities.”
It continues by acknowledging the cost of such a venture. “This unfortunately means cancelling work on all other projects at the studio, which will impact many of our colleagues immediately. We are giving notices to everyone whose roles are affected. The restructure has not come easily, and has truly been the last resort to ensure Phoenix Labs can survive, and thrive in the long term. It’s impossible to put into words how deeply we value every talented individual who has contributed their hard work and passion to every project at our studio.”
“We are doing all we can to help our departing team members in this interim period and encourage any studios looking for incredible talent to speak with the one-of-a-kind people that have been part of Phoenix Lab’s journey.”
The statement itself doesn’t actually note the number of employees impacted by this decision, but sources speaking to Polygon senior reporter Nicole Carpenter state that it is over 100. This isn’t the first time the company has been faced with such cuts. When the company was bought last May 30 staff were let go around the same time.
It’s a bizarre and unfortunate U-turn for the company. Back in 2022 it posted a proud and triumphant post on the official Phoenix Lab website, boasting a fresh new direction, a new look, and ten games in active development. This was notably prior to the company’s management being spun out from its prior owner Garena thanks to an investment backed buy-out. Since then, the company has been totally privately owned.
Perhaps the refocus will eventually lead to a brighter future for Phoenix Labs, but yet again we’re seeing lots of hardworking devs cut by a sharp shift in strategy. With many based in the USA, these devs will likely be terminated immediately. One such dev, Nicholas Kole, posted art of a game mere weeks from its official announcement. A bitter garnish to an already rancid bit of news.