French game developer and publisher Don't Nod, known for its work on the Life is Strange series, Remember Me, Vampyr, Banishers, Jusant, and most recently Aphelion, appears to be preparing for another round of staff reductions. The company has announced it is "embarking on a transformation initiative" in response to "profound changes in the economic conditions of the video game industry."
While layoffs are not explicitly stated, the company's announcement refers to a meeting scheduled for September 3, 2026, concerning a "job-preservation plan" and ongoing "negotiations with the trade union representing employees," which suggests a restructuring that may involve job losses.
Don't Nod's full statement indicates a need to adapt its operating model due to economic shifts and a deterioration in the group's key economic indicators. The company stated that its Management has convened Employee Representative Bodies for an information and consultation procedure prior to the possible implementation of a job-preservation plan. Following these meetings, Don't Nod will disclose the key elements and next steps of the transformation plan on the same day.
This potential restructuring follows a similar event last year when Don't Nod laid off staff from its Montreal office. The current situation is not entirely unexpected, as the company revealed in June that it was facing financial difficulties, possibly due to the disappointing performance of its space-based action-adventure game, Aphelion, which was released in April. Aphelion received middling scores on Metacritic and was available on Game Pass at launch. The game tasked players with controlling a pair of astronauts hunted across the planet Persephone, with each character offering distinct gameplay mechanics.