Yet another video game developer is experiencing layoffs. This time it’s Phoenix Labs, the developer of “Dauntless” and “Fae Farm,” who made an announcement about the reorganization on LinkedIn late last night.
The statement read: “Today is an extremely difficult day. After a long period of evaluating how to navigate our economic environment, we must make a significant reorganization of the company to pave the way for a strong future. We are reorganizing Phoenix Labs to focus our Top-notch live service games Dauntless and Fae Farm, and serving their communities.”
It also acknowledges the cost of such risk taking. “Unfortunately, this means the cancellation of work on all other projects in the studio, which will immediately impact many of our colleagues. We are sending notices to all affected roles. The reorganization is hard-won and is indeed a step forward to ensure that, in the long term, Phoenix Labs has survived and thrived, and words cannot express how much we value each and every talented person who contributes their hard work and passion to every project in our studio.”
“We are doing everything we can to help our departing team members during this transition period and encourage any studio looking for exceptional talent to speak with the unique individuals who have been part of the Phoenix Labs journey.”
The statement itself didn’t actually name the number of employees affected by the decision, but sources who spoke to Polygon senior reporter Nicole Carpenter said the number was over 100. This isn’t the first time the company has faced such layoffs. When the company was acquired on May 30 last year, it laid off 0 employees around the same time.
It’s a strange and unfortunate turn of events for the company. Back in 2022, it published a proud and triumphant post on the official Phoenix Lab website, boasting about a new direction, a new look, and ten games in active development. Notably, this was before the company’s management was spun off from its previous owner, Garena, through an investment-backed acquisition. The company has since been fully private.
Perhaps the renewed focus will ultimately lead to a brighter future for Phoenix Labs, but once again we’re seeing many hard-working developers being laid off due to a drastic shift in strategy. Since many developers are located in the United States, these developers may be terminated immediately. One such developer is Nicholas Kole, who released art for the game just weeks after its official release. A bitter garnish to an already rancid news.
