Don't Nod is cutting up to 90 jobs and warns it may not survive beyond January 2027

Don't Nod

Life is Strange developer Don't Nod has announced a restructuring that could result in up to 90 redundancies, after the commercial failure of its April 2026 release Aphelion pushed the studio to the edge of financial collapse. The company has warned of "material uncertainty" about its ability to continue operating beyond early 2027.

The details:

Aphelion, a space-based action-adventure released on PC, PS5, and Xbox Series X|S in April, significantly underperformed commercially. Don't Nod's gross cash reserves fell from €15.4 million at the end of 2025 to just €8 million by July 2026 — a collapse that triggered the restructuring announcement. The company flagged the liquidity crisis publicly in June.
The board has since approved a new business plan designed to "maintain competitiveness," but the scale of cuts required — up to 90 of its employees — represents a severe reduction for a studio of Don't Nod's size. The company has not yet confirmed a final headcount.
Don't Nod is the studio behind the Life is Strange series, Vampyr, and Tell Me Why. The studio has struggled over the past few years, with several waves of layoffs following the commercial underperformance of its releases, despite the general positive reception from critics.

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