Phoenix Labs Announces Another Round of Layoffs
Phoenix Labs, the developer behind Dauntless and Fae Farm, has unfortunately announced another round of layoffs, marking the fourth since May 2023. This time, the layoffs will impact the majority of staff at the studio.
The studio initially saw success with its free-to-play game Dauntless, followed by the release of Fae Farm in 2023. However, ever since its acquisition by blockchain company Forte Labs in 2023, Phoenix Labs has been hit by multiple rounds of layoffs. The first round in May 2023 affected 9 percent of its workforce, followed by 34 more layoffs seven months later, and an additional 140 job cuts in May 2024.
In a message posted on LinkedIn, the developer expressed the difficulty of the situation, stating, “Today is another difficult day at Phoenix Labs. 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.”
The developer also expressed gratitude for the contributions of the impacted individuals, recognizing their talent and dedication. Phoenix Labs encouraged industry peers to consider hiring these exceptional individuals.
Regarding the fate of Dauntless and Fae Farm, the studio plans to provide more information in the upcoming weeks. For now, their main focus is on supporting those affected by the layoffs.
Phoenix Labs’ announcement adds to the challenges faced by the games industry in 2024, with around 13000 employees believed to have lost their jobs. The trend of layoffs and studio closures has continued into January, with Ubisoft announcing 185 job cuts and Jar of Sparks laying off its entire team earlier in the month.