We’re just a couple of weeks into 2024, but the layoffs that plagued the gaming industry last year are back. An undisclosed number of employees at Lost Boys Interactive have been laid off across seemingly “all disciplines at all levels,” terminated producer Jared Pace told Aftermath. Lost Boys Interactive is responsible for games like Tiny Tina’s Wonderlands — which is launching on PlayStation Plus.
The news was initially reported by both terminated and remaining employees. Lost Boys Interactive eventually released a statement to Eurogamer confirming the news, blaming “headwinds facing the industry right now.” It continued, “Unfortunately, this does mean we will separate from some of our team members and we’re working closely with those affected. We know this is a hard time for this talented and experienced group of people and will provide support and assistance through this transition to those leaving.”
These layoffs are just the latest set from its parent company, Embracer (Gearbox technically owns Lost Boys Interactive but is, itself, owned by Embracer). In September, Embracer laid off about 900 employees, equal to about five percent of its staff. Only two months later, it laid off another 50 or so employees at Fishlabs, developers of Chorus. The company has also shuttered some of its studios and is rumored to be selling Gearbox, which it bought in 2021 for $1.4 billion. Embracer blames the tremendous restructuring and layoffs on the dissolution of a potential deal that would have brought $2 billion in revenue over six years.