Story-led game developer Telltale is reportedly experiencing more layoffs in the games industry.

In a statement to news outlet Venturebeat, a spokesperson from Telltale confirmed the layoffs and reassured that production on new titles, including The Wolf Among Us 3, was still ongoing. The company acknowledged the difficult decision to let some team members go and expressed gratitude for their dedication. The spokesperson emphasized Telltale’s commitment to storytelling and finding new ways to continue their work.

Scope of Layoffs

According to team member Jonah Huang, the layoffs began in early September, affecting “most” of the team. While the exact scale of the job cuts remains unknown, even a potential seven layoffs would be significant for a developer specializing in point-and-click narrative adventure games. Telltale’s existing team was relatively small, which adds to the impact of these layoffs.

Challenges for Telltale Games

If the layoffs at Telltale turn out to be as extensive as claimed by Huang, or even with just seven confirmed members being laid off, it could spell more trouble for the company. Telltale Games previously collapsed in 2018, resulting in employees not receiving severance and reports of excessive work hours. Despite being resurrected in a new form, the company has faced criticism for hiring veteran developers as contractors, potentially diluting the uniqueness of the original studio. Furthermore, despite securing major funding and acquiring Flavourworks, these recent redundancies indicate ongoing challenges for the resurgent company.

Industry-Wide Layoffs

The layoffs at Telltale Games are part of a broader trend of layoffs affecting the gaming industry in recent months. Following a peak during the Covid-19 pandemic, the industry has experienced a significant downturn in revenue and growth. This change has spooked investors and upper management, leading to layoffs at various companies across multiple platforms, despite the success of some titles.