French studio Don't Nod on the brink of bankruptcy
A serious internal crisis is unfolding at the French studio Don't Nod, known for games such as Life is Strange, Vampyr, Remember Me, and Banishers: New Eden. The company has initiated a restructuring procedure to prevent insolvency, accompanied by large-scale staff layoffs.
Mass layoffs and transition to outsourcing
According to a report from the French video game workers' union (STJV), the studio has laid off almost all key creative and technical staff: concept artists, character 3D modelers, most level designers, programmers, QA testers, and sound designers.
Despite the loss of the team, the company's management still hopes to complete the development of the project codenamed P14 by shifting the bulk of the work to outsourcing companies.
- Laid-off employees are allegedly offered only the statutory minimum compensation without voluntary redundancy programs.
- Union representatives (CSE) report a significant deterioration in the psychological and physical health of employees due to prolonged stress and uncertainty.
- Negotiations between the union and Don't Nod management are set to conclude in early November.
Financial issues with recent releases
The company's financial standing was significantly undermined following weak commercial performance of recent projects. The spring release of the game Aphelion failed to attract sufficient player attention, and the success of Lost Records proved insufficient to stabilize the situation at the studio.
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