Night School Studio Layoffs: Netflix-Owned 'Oxenfree' Developer Faces Staff Reductions

Night School Studio, best known for developing the critically acclaimed indie titles Oxenfree and Oxenfree II: Lost Signals, has confirmed layoffs amid wider restructuring within Netflix's gaming division.

These changes come on the heels of Netflix’s acquisition of the studio in 2021 and are the latest in a series of high-profile adjustments in the gaming industry as developers continue to face economic challenges. According to information first reported by Game Developer, an undisclosed number of employees were let go from Night School Studio in January 2025.

Both current and former employees, who chose to remain anonymous, described feelings of shock upon learning of the sudden job losses.

While Netflix has not issued a public statement on the matter, sources suggest that ongoing projects at Night School Studio will not be directly affected by the recent cuts. This development follows Netflix’s decision in October 2024 to close its internal triple-A development team, Team Blue, which was led by industry veteran Joseph Staten, formerly of Halo fame.

The streaming giant initially purchased Night School Studio as part of its investment in the video game sector, seeking to expand its portfolio and offer a curated selection of interactive experiences to its subscribers.

To date, Netflix allows its users to access more than 80 games—including the Oxenfree series and Afterparty—on Android and iOS platforms through its growing catalog.

However, Netflix has not publicly disclosed detailed performance metrics for its gaming segment. Night School Studio launched its first game, Oxenfree, in 2016 to widespread critical and commercial success, later releasing a Nintendo Switch version in 2017.

After the release of their follow-up project, Afterparty, the studio delivered Oxenfree II: Lost Signals in 2023, further cementing its reputation for crafting immersive narrative-driven experiences.

In addition, a TV adaptation of Oxenfree has also reportedly entered early development, underscoring the franchise’s enduring popularity. The layoffs at Night School Studio represent another challenge for the video game industry, which has seen mounting job losses and studio closures over the past two years.

Other major names like 10:10 Games and Ubisoft have also announced workforce reductions during this period, highlighting a turbulent time for developers worldwide. As Night School Studio continues production on its upcoming projects, the support from the broader gaming community remains crucial for the dedicated developers affected by these recent changes.

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