Skydance Games Lays Off Employees In Gaming Division After Warner Bros. Merger

Skydance Games has laid off staff across its video game division, the company has confirmed, just over a month after Paramount Skydance completed its acquisition of Warner Bros Discovery. At least 25 people have lost their jobs, according to posts by colleagues, though the full number is unknown. The cuts hit a newly enlarged games group that includes studios such as Avalanche Software, NetherRealm and Rocksteady, and come as the parent company now pursues billions of dollars in merger savings.

Skydance confirmed the layoffs to Variety, after employees began posting about their exits over the weekend. A spokesperson told the outlet the company was making reorganisation and operational changes in a few areas to position the division for long-term growth. TheWrap, quoting the same spokesperson, reported that the company had reviewed where it was investing and decided to scale down some projects.

Who has been affected

David Vera, a lead engineer at Skydance Games who was not affected, said on LinkedIn that the studio had lost a lot of talent and named colleagues across art, design and engineering. He said they were not let go over performance or conduct. Rebecca Vessal, a senior gameplay and AI programmer, said most of her game team at Skydance Interactive was laid off, though she remains employed. Associate design director David Ballard also said on LinkedIn that his time at the company had ended with a layoff. Insider Gaming, as relayed by 80.lv, reported that at least 30 people were let go and that the real figure could be higher. Skydance has not confirmed any numbers.

The merger backdrop

On October 6, Skydance merged Paramount Games Studio with Warner Bros. Games' in-house developers: Avalanche Software, NetherRealm, Rocksteady, TT Games and the WB Games teams in Montreal and Boston. The combined unit works on franchises ranging from Star Trek and Mission: Impossible to Warner Bros. properties, and is led by Tony Driscoll, who previously worked with Fortnite.

The merged company has promised at least $6 billion in cost savings, which will include layoffs. Skydance also offered voluntary buyouts last month and is moving to a five-day in-office policy.