Don’t Nod, the French game development studio, has announced the possibility of a significant workforce reorganization in response to ongoing financial difficulties and a competitive market environment. This news comes as the company reported declining revenues and substantial write-downs during its latest earnings update.
The studio, known for popular titles such as Life is Strange, stated that despite previous efforts to stabilize its business, the challenging ecosystem now requires it to consider more drastic measures. One of these measures includes a potential reorganization that could affect up to 69 jobs in its French workforce.
While the specifics of the job cuts have not been disclosed, the company has initiated discussions with employee representatives and plans to begin a formal consultation process on the matter.
The reorganization is intended to address several key areas. Don’t Nod aims to enhance the role of its editorial committee, increase organizational agility, align technologies for more efficient operations, and secure necessary financing to remain competitive.
The company is also committed to working with employee representatives to explore social measures, including the possibility of voluntary redundancies, should the restructuring be approved.
Financially, Don’t Nod reported an 11% drop in revenue for the first half of 2024. The company attributed part of this decline to the underperformance of its recent releases, Jusant and Banishers: Ghosts of New Eden, which resulted in a combined write-down of €24 million ($26.1 million).
Additionally, a further €7.6 million ($8.3 million) was written off due to the temporary halt in the development of two other projects, P12 and P13, as resources are reallocated to more promising titles.
Despite these financial setbacks and the looming staff reductions, Don’t Nod reassured fans that development on Lost Records: Bloom & Rage and two other unnamed games will continue uninterrupted.
