Originally published on The Daily Flare.
Skydance Games has laid off at least 25 employees in a restructuring, with staff describing cuts over the weekend and the company confirming project scale-backs on Monday, November 9.
A Skydance spokesperson told TheWrap that the company was making “reorganization and operational shifts” in parts of its games business after reviewing where it was investing. The spokesperson said Skydance had decided to scale down some projects, adding that roles were affected. The company described the changes as part of efforts to position Skydance Games for long-term growth and said the decision was not a reflection of the affected employees’ talent, dedication or creativity.
The total number of employees affected remains unclear. Paramount Games lead engineer David Vera said in a LinkedIn post that at least 25 colleagues had lost their jobs. His list included workers in production, writing, engineering, audio and level design, as well as 2D, 3D, visual-effects and technical art.
Vera wrote that the workers had not been let go because of performance or “problematic behaviors.” He described them as “extremely worthy folks who were pushing themselves to the limit to try to make something they could all be proud of.” His comments offered a view from inside the teams, while Skydance’s statement did not identify the projects being reduced or give a headcount.
Rebecca Vessal, a senior gameplay and game AI programmer at Skydance Games, said on LinkedIn that she was not among those dismissed but that most of her team at Skydance Interactive had been laid off. She praised her former colleagues and urged other game-development companies to consider them for open positions.
The cuts come as Skydance reorganizes its games operations following its acquisition of Warner Bros. Discovery. Paramount Games Studio was launched in June, and after the $110 billion Warner Bros. Discovery deal closed on October 6, the combined company brought its video-game divisions under the Skydance Games name. The division is led by Tony Driscoll, Skydance’s president of games and experiences.
The games business has undergone several changes in recent months. Skydance Interactive, known for virtual-reality titles including The Walking Dead: Saints & Sinners and Behemoth, was combined with Skydance New Media as part of the formation of Paramount Games. An internal FAQ described in Vertical Slice said individual business units, including Warner Bros. Games, would retain their own brand identities within the wider group.
Paramount Games’ announced projects include Teenage Mutant Ninja Turtles: The Last Ronin, Avatar Legends: The Fighting Game, Marvel 1943: Rise of Hydra and an untitled Star Wars game. Earlier Skydance Interactive releases include Archangel and The Walking Dead: Saints & Sinners. The company has said it is scaling down some projects but has not named which ones.
The restructuring is taking place amid a broader cost-cutting drive after the Warner Bros. Discovery merger. Skydance co-CEOs David Ellison and Ynon Kreiz have promised at least $6 billion in cost savings, which the company has said will include layoffs. In late October, Skydance offered voluntary buyouts to some employees and shifted to a mandatory five-day-a-week office policy.
