Dauntless developer Phoenix Labs lays off 9% of its workforce

Phoenix Labs, known for its 2019 free-to-play RPG Dauntless, has confirmed that 9% of its total staff were let go from the company last week due to "reorganization" within the company.

The details:

• The company confirmed to Polygon and GamesIndustry.biz that it had made cuts at the studio, but refused to provide specific figures. According to the developer's LinkedIn page, it currently employs 308 people, meaning approximately 30 people were directly affected across the United States and Canada. The layoffs were announced internally last week, with some employees tweeting about it.
• According to a studio representative, the company evaluated all of its currently in-development projects to determine its "strongest path in terms of success and sustainability," resulting in the cancellation of some of its 10 ongoing projects and the reassignment or layoff of staff where necessary. It concluded that the switch provides the "best opportunity for the success of Fae Farm and Dauntless, as well as the remaining unannounced titles in [its] portfolio.”
• The layoffs come just months after the company separated from Garena and went private. A group of investors helped the studio's management buy out the company from the Singaporean publisher, which bought it in 2020. Following the completion of the acquisition, the developer expanded by opening new locations in Los Angeles and Montreal.
• Phoenix Labs' only current release is Dauntless, which it continues to support, though Fae Farm, a co-op farming Nintendo Switch exclusive, is set to release in 2023. According to the studio, it claimed to have 10 projects in various stages of development, including full production, but it's unclear how many have been directly affected by the layoffs.

Other recent layoffs:

• Meta has reportedly laid off roughly one-third of the staff at Ready at Dawn, including the studio's head, with Downpour Interactive also affected. According to a former employee, Ready at Dawn has lost roughly half of its workforce due to attrition since August 2022, with Meta laying off tens of thousands in the last year.
• Ten Square Games, a Polish mobile publisher, has confirmed that it has laid off 120 staff members, or 25% of its workforce, and canceled two of its games, Undead Clash and Fishing Masters, to cut costs.
• Electronic Arts (EA) laid off approximately 6% of its current workforce at the end of March as part of a company-wide restructuring. The decision affected approximately 775 jobs, adding to layoffs at its subsidiaries, Respawn Entertainment and Industrial Toys earlier this year.