Dauntless and Fae Farm developer Phoenix Labs lays off the majority of its workforce
Phoenix Labs, the studio behind Dauntless and Fae Farm, has announced its fourth round of layoffs in less than two years, this time affecting the "majority" of its workforce.
The details:
Following the cancellation of several projects and the layoff of 140 employees in May 2024, the studio has now announced in a LinkedIn post that the majority of its current workforce will be laid off for undisclosed reasons. “Today is another difficult day at Phoenix Labs,” the statement reads. “We have made the tough decision to part ways with the majority of the studio as part of unfortunate but necessary changes to our operations. We recognize and deeply appreciate the contribution of every individual impacted. Their talent, dedication, and creativity have left an indelible mark on our company and our games.”
The studio has stated that it will announce the future of Dauntless and Fae Farm soon, as its current focus is "supporting those affected through this transition." Following the cancellations of Phoenix Labs' other in-development projects over the last two years, the two live-service games remained the company's primary focus.
Founded by three former Riot Games developers back in 2014, Phoenix Labs has struggled over the past few years. Ahead of the release of its life sim Fae Farm later in the year, the developer announced that it would lay off 9% of its workforce in May 2023 after canceling a number of unannounced games to provide the "best opportunity for the success of Fae Farm and Dauntless." This was followed by 34 job cuts across its "publishing, HR, IT, and shared services teams" in December 2023, as well as additional project cancellations in May 2024, resulting in the layoff of an additional 140 employees.
Other recent layoffs:
Just two weeks into 2025, Freejam, Toadman Interactive, and Counterplay Games all announced their closures. Piranha Games, which developed multiple MechWarrior titles, also laid off employees due to poor commercial performance of its recent releases.
