The gaming industry may be flourishing in some ways, but it is floundering in many others. Game studio People Can Fly has announced layoffs among its team, with CEO Sebastian Wojciechowski sharing the news through a post on LinkedIn. The layoffs at the game developer will also be accompanied by the cancellation of two upcoming titles after its negotiations with the publisher went sour.
The gaming industry job cuts are ramping up as we speak, with repeated project cancellations across studios both big and small. The cuts at EA in particular have been the talk of the town, but it isn’t the only organization that has downsized in light of tightening budgets and shifting priorities at the studios. The game cancellations are something we can live with but the workforce cuts are hard-hitting considering most studios are currently firing with very few of them intent on hiring again.
The gaming industry layoffs are ramping up, and People Can Fly is the latest studio to announce cuts. (Image: Pexels)
People Can Fly Layoffs Announced With the Goal of Scaling Down Teams
The job cuts at People Can Fly are terribly unfortunate but they also showcase a worrying trend in the gaming industry. Projects are being initiated with great vigor, but there appears to be a recurring lack of faith in their development, following which projects get canceled and developers suffer as a result. This time, the People Can Fly layoffs are a result of the closure of two games under development, Project Gemini and Project Bifrost.
The game developer did not name the publisher behind the projects, but the CEO explained that the unnamed publisher was unwilling to provide the company with clarity on the future of the project. He explained that the publisher did not present the team with a “draft of the subsequent content rider to the Publishing Agreement covering the terms and conditions of further milestones on Project Gemini and the lack of communication from the Publisher as to its willingness to continue or terminate the Gemini project.”
Project Bifrost was also canceled due to uncertainty about the previously mentioned project, which “showed a lack of prospects for securing organizational resources and funds necessary to continue the production and release of this project.” With both projects canceled, People Can Fly had no choice but to scale down its teams.
Is Square Enix the Reason Behind the Projects Being Canceled?
The exact scale of the layoffs at People Can Fly has not been revealed but with two projects eliminated, we expect that the company will scale down significantly. While the CEO of the company did not name the publisher, online speculation suggests that Square Enix could be the reason the project was canceled.
People Can Fly previously worked with Square Enix on the development of Outriders, and it was believed that Project Gemini was another collaboration between the two. The developer had previously accused Square Enix of failing to pay out the royalties from the Outrider game in 2021, which shows that matters have been strained between the two parties for a long time. People Can Fly is still working with Krafton, Sony Interactive, and Xbox Game Studios on separate projects, which is reassuring and shows that there are no immediate risks of the studio shutting down entirely.
The Gaming Industry Job Cuts Suggest an Alarming Trend
The People Can Fly layoffs are a small part of a much larger trend taking the world by storm. Job cuts have been witnessed across industries, but since 2024, there has been a spike in job cuts in the gaming industry. According to Statista, an estimated 14,800 video game employees lost their jobs last year, with a similar number of cuts in 2023, totaling up to 10,500. If the trend continues, we could see rising numbers this year as well, considering multiple studios have either been shuttered or partially laid off in 2025.
Much of the previous layoffs were attributed to COVID-era hiring spikes that inflated studios beyond their needs, but this remains too simple of a reason to account for the scale of cuts being witnessed. Despite successful releases, firms are closing down some of their development teams and attempting to limit their focus to a handful of projects that they are certain will be successful. Unfortunately, this leaves too much riding on the success of one or two games.
Developers remain hopeful that most organizations have rid themselves of the layoff bug and will no longer explore cuts, but this appears unlikely. We expect that more employee cuts will be announced in the coming months, making gaming a very bittersweet experience for all those who partake in it.
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