Employees of Don't Nod, the studio recognized for its work on the Life is Strange series, have released a statement expressing serious concerns about the company's financial health and management practices. The statement, issued by union members from Le Syndicat des Travailleureuses du Jeu Vidéo, suggests the company is at risk of insolvency and potential layoffs, while also alleging "illegal" managerial actions that have fostered an environment of "uncertainty and anxiety" among staff.
According to the union's declaration, Don't Nod is currently under a safeguard procedure, a legal framework designed to protect companies from insolvency by providing a period to reorganize their debts. Employees report being presented by management with multiple financial scenarios, each reportedly involving staff reductions. In the most severe projection, the company could face liquidation by the end of 2026.
The union claims that a significant portion of Don't Nod's non-managerial workforce has been affected by recent cuts, impacting roles such as animators, character artists, concept artists, associate producers, environmental artists, sound designers, level designers, programmers, QA testers, HR personnel, and developers. Approximately half of the game designers have also been laid off.
The union statement critically noted that management's approach appears to favor individual selections over job preservation, which they deem illegal. Furthermore, the statement suggests that management plans to rely on outsourcing to cover the workload previously handled by laid-off employees, a strategy the union finds disconnected from the reality of the situation.
Employees have reportedly been experiencing prolonged periods of stress and instability over the past two years. The statement details that six workplace accidents have occurred this year, prompting an inquiry into a "serious and immediate danger." It also alleges that management has rejected requests for voluntary leave plans from employees willing to depart earlier, indicating a disregard for the impact on employee well-being.
A government agency is expected to issue a ruling on November 3, following which management will have 21 days to present a plan. If this plan is approved, employees could begin receiving termination notices as early as November 25. The union remarked that if the plan is rejected, management would be forced to improvise, suggesting a lack of proactive contingency planning.
These revelations follow previous warnings from auditors in a financial report that Don't Nod might deplete its funds by November. The studio's most recent release, Aphelion, garnered mixed reviews earlier this year. In light of the union's detailed account, the future of Don't Nod's upcoming projects appears uncertain.