Skydance Games Confirms Layoffs Following Warner Bros.-Paramount Merger

Skydance Games has laid off staff following last month's Warner Bros-Paramount merger.

Rumblings of a restructuring started when employees from the recently established Paramount Games Studio reported they had been let go earlier today. Skydance confirmed the layoffs in a statement shared with Variety.

"As part of our ongoing efforts to position Skydance Games for long-term growth and success, we are implementing reorganization and operational shifts across a few areas of our business," a Skydance spokesperson said. "We have stepped back and taken some time to consider where we are investing our efforts and have made the difficult decision to scale down some of our projects.

"As a result, there are roles impacted. This is not a reflection of the talent, dedication, or creativity of those affected and we are grateful for their contributions. We are committed to approaching the process with transparency, care and respect for those who are leaving the company."

Paramount Games – which encompasses gaming studios like Skydance Interactive, Skydance New Media, and other Paramount and Skydance entities – was announced this past June. During an interview with IGN at the time, senior vice president, head of creative and production Shawn Kittelsen detailed what was then described as a renewed push into AAA gaming. This included the announcement of Teenage Mutant Ninja Turtles: The Last Ronin, as well as games based on projects like Yellowstone, Tulsa King, and Lioness.

Now, many of the people who would have been or were working on projects in its upcoming slate have been laid off. Writer Mallory Dobry, senior concept artist Ameorry Luo, lead VFX artist Michael Parsons, and associate design director David Ballard were just a few of the names impacted by the move, with each taking to LinkedIn to update their work status.

"Skydance just lost a ton of great talent yesterday," lead engineer David Vera said. "I was not affected this time, but so many passionate, hard-working, talented individuals are now competing with thousands of others trying to get their next gig. In this tumultuous climate, it's hard to find great talent and collaborators to help build your next team and game. The Skydance crew wasn't let go because of performance or problematic behaviors. These are all extremely worthy folks who were pushing themselves to the limit to try to make something they could all be proud of."

Insider Gaming reported that at least 30 developers were affected by Skydance layoffs, adding that "it's believed that the real number is higher." The Skydance games layoffs arrive in a post-Warner Bros.-Paramount merger world. The two entertainment giants were given the go-ahead to join under one Skydance banner last month. We've felt the ramifications of that deal in more ways than one today, as DC Studios just announced that James Gunn and Peter Safran would be stepping down as co-chairmen of the company, effective December 1.