Eidos-Montréal Layoffs Highlight Continuing Industry Challenges for AAA Game Development

The video game industry continues to confront a wave of workforce reductions, with Eidos-Montréal—the renowned development studio behind Guardians of the Galaxy and Shadow of the Tomb Raider—becoming the latest high-profile name affected by layoffs.

As part of the Embracer Group, Eidos-Montréal has long been recognized for delivering some of the most celebrated AAA titles in recent years, launching on platforms like PlayStation, Xbox, and PC, with their legacy also resonating with Nintendo audiences following past releases for Nintendo hardware.

This month, multiple reports from employees surfaced across social media platforms such as LinkedIn, revealing that Eidos-Montréal has enacted another series of staff reductions.

According to those posts, over a dozen team members have been let go in recent weeks.

While the studio itself has yet to issue an official statement, this development follows a previous round of layoffs earlier in March, during which 75 staff members were released. Industry professionals who reported the news indicated that the most recent layoffs primarily impacted roles in design, production, writing, 3D art, concept art, and animation.

This trend echoes a broader pattern seen across the AAA game sector, where repeated downsizing has become alarmingly frequent in recent years.

The reasons for these ongoing job cuts are complex, ranging from shifting consumer interests and sales performance to persistent concerns about workplace culture and sustainability within large-scale studios. A representative familiar with the situation noted that these workforce reductions highlight "significant challenges throughout the AAA game development landscape, affecting not only project pipelines, but the very talent that drives innovation in the industry." As increasing numbers of workers share their experiences publicly, the realities of job insecurity and the demands of game development at scale are becoming ever-more visible. In contrast, the games market is witnessing a rise in successful projects from smaller, independent studios.

For instance, recent indie successes such as Clair Obscur: Expedition 33 have won critical acclaim and strong sales, suggesting a shifting dynamic where smaller teams can capture both creative attention and commercial success.

While large publishers and studios, including those with connections to Nintendo Switch and other leading platforms, continue to contend with internal restructuring, these changes underscore a potential transformation in how great games reach players. As the industry navigates these ongoing waves of layoffs and realignment, Eidos-Montréal's situation serves as a pointed reminder of the need for adaptability and transparent communication within game development.

Nintendo news outlets and gaming communities will closely monitor further statements from Eidos-Montréal and Embracer Group, reporting new developments as they emerge. (Sources: Insider Gaming, LinkedIn)