Skydance Games cuts staff after Paramount merger

Skydance Games has begun laying off employees following Paramount's acquisition of Warner Bros. Discovery and subsequent rebrand to Skydance, marking the latest round of consolidation-driven cuts in the gaming industry.

Reports of the layoffs emerged on LinkedIn earlier this week, with multiple current and former staff members detailing their departures. Lead engineer David Vera, who retained his position, acknowledged that the studio "lost a ton of great talent." Principal environment artist Dana Klaren shared a list of over 25 affected employees, including himself. Senior gameplay and game AI programmer Rebecca Vessal noted that "most" of her team had been let go.

The layoffs come as Skydance integrates its gaming operations following the merger. Prior to the acquisition, both Paramount and Warner Bros. maintained separate game divisions. Paramount operated Skydance Interactive and Skydance New Media as distinct entities, which were consolidated into Skydance Games Studio earlier in the year. The newly unified division is set to publish PlatinumGames' upcoming Teenage Mutant Ninja Turtles: The Last Ronin, while Skydance New Media continues development on Marvel 1943: Rise of Hydra, though that title's current status remains uncertain.

Warner Bros. Games had struggled to maintain momentum following its 2023 successes with Legacy of Hogwarts and Mortal Kombat 1. During Netflix's evaluation of the Warner Bros. acquisition, the gaming division was deemed to hold "relatively minor" strategic value, though Netflix's co-CEO expressed enthusiasm about accessing certain intellectual properties through the deal.

Skydance confirmed the cuts to media outlets, stating that the company is "implementing reorganization and operational shifts across a few areas of our business" as part of efforts to position the division for sustained growth. The company indicated it had reassessed investment priorities and made the decision to reduce the scope of certain projects. A spokesperson emphasized that the departing employees were valued contributors, characterizing the cuts as difficult but necessary decisions made with consideration for those affected. Skydance pledged to handle the transition with transparency and respect for departing staff members.