Sucker Punch Reportedly Lays Off 26 Developers Amidst Market Challenges

The Ghost of Tsushima and Ghost of Yotei studio cites industry difficulties and future project needs for the staffing reductions.

Oct 26, 2026
Game News
Sucker Punch Reportedly Lays Off 26 Developers Amidst Market Challenges

Sucker Punch, the PlayStation-owned developer known for the Sly Cooper series, Infamous, and last year's Ghost of Yotei, has reportedly undergone layoffs, with 26 workers affected. According to a report from Aftermath, citing a former employee, the studio leadership informed staff that the decision was made after observing market challenges and reviewing the needs of their next unannounced project.

In an internal email, studio executives stated, "After carefully observing the challenges in the market and reviewing the team needs for our next project, we've decided to make some staffing reductions. Several positions across Sucker Punch will be eliminated as a result." The message acknowledged the difficulty of the decision, emphasizing that it was not made lightly and that efforts were made to support the affected employees. Leadership indicated that further details regarding the studio's future would be shared the following week.

Ghost of Yotei, Sucker Punch's most recent release, achieved significant commercial success for PlayStation. The game sold over 3.3 million copies within its first month, surpassing the performance of other PS5 titles like Astro Bot during the same period. Sony previously stated that Ghost of Yotei exceeded the sales of its predecessor, Ghost of Tsushima, in its initial launch month and contributed significantly to the company's financial results. Ghost of Tsushima itself has sold over 13 million copies across consoles and PC.

Despite the success of its recent titles, the layoffs at Sucker Punch underscore the volatile nature of the games industry, where even successful studios can face staffing reductions. The studio also recently released Ghost of Yotei: Complete Edition, which included additional content such as a roguelike mode and a story-focused bonus episode titled Echoes of Sekigahara.

Sources