Do not Nod’s ongoing struggles proceed, with the corporate asserting it is making ready to implement a reorganization that might end in layoffs of as much as 69 staff.
The announcement comes with the corporate’s monetary outcomes for the primary half of the yr immediately, which confirmed an 11% year-over-year decline in working income. Per the corporate, the decline is the results of Banishers: Ghosts of New Eden and Jusant not performing in addition to anticipated.
“Our half-year outcomes for 2024 mirror the financial underperformance of our newest launch, regardless of strong scores on Metacritic, in addition to the accounting affect of the selections we needed to take,” stated CEO Oskar Guilbert in a press release. “The preliminary efficiency assist measures introduced final spring now not appear adequate to keep up the corporate’s competitiveness. In consequence, immediately we offered a reorganization undertaking to the worker consultant our bodies, which may set Do not Nod on a brand new improvement trajectory. I’m absolutely aware of the affect this undertaking could have on all our staff. Securing our firm’s sources and restoring its capacity to carry out extra in an more and more aggressive and selective business is extraordinarily mandatory.”
The corporate has already taken some restructuring measures to scale back prices, together with “urgent pause” on two unannounced tasks. Nevertheless, this appears to not be sufficient, as Do not Nod can also be anticipating to put off a lot of people within the coming months. The precise quantity continues to be in flux, as Do not Nod administration should negotiate with worker union representatives and should implement different measures corresponding to a voluntary redundancy plan. Notably, earlier this yr, the consultant French union Le Syndicat des Travailleurs et Travailleuses du Jeu Vidéo (STJV) accused the corporate of mismanagement, claiming staff have been dealing with burnout because of the ongoing reorganization and that communication, understaffing, and shifting deadlines have been endangering the workforce.
Replace 2:22pm PT: STJV has issued a press release condeming the layoffs, saying the corporate broke the legislation by not offering any info to staff beforehand about immediately’s assembly agenda the place the layoffs have been introduced. The union additionally accused the corporate of ignoring staff asking for clearer communication concerning the state of the corporate, saying that “alarm bells have been ringing for months.”
“The Don’t Nod union part, as effectively the entire of the STJV, can’t tolerate the corporate rejecting the obligations of its personal failures on its staff,” the assertion reads. “We warned them way back, however they ignored us and accused us of being too agressive to talk with. With this layoffs plan, they’re creating an environment of maximum violece. We’re calling on all staff at Don’t Nod to mobilise to avoid wasting their jobs and dealing situations.”
Unique story continues:
In accordance with a video games business layoff tracker, over 13,000 recreation builders have been laid off simply this yr (together with 32 simply yesterday at Riot Video games). Over 10,000 builders have been laid off in 2023 and over 8,000 in 2022. We have beforehand reported on how the continued business mass layoffs have impacted these affected by them.
Do not Nod has stated that Misplaced Data: Bloom & Rage continues to be on observe for its February 18, 2025 launch, and that two different tasks in improvement are anticipated to launch earlier than the tip of 2027.
Rebekah Valentine is a senior reporter for IGN. Received a narrative tip? Ship it to rvalentine@ign.com.