Supermassive Games, the studio known for narrative horror titles like Until Dawn, The Quarry, and The Dark Pictures Anthology, has initiated a redundancy consultation process that is expected to result in the dismissal of up to 75 employees. The company announced this difficult decision in a statement shared on social media, framing it as a necessary measure to ensure its long-term sustainability.
This marks the third significant reduction in workforce for Supermassive Games in less than three years. In February 2024, reports indicated that the studio laid off approximately 90 employees. Prior to that, in July 2025, Supermassive delayed its game Directive 8020 and let go of 36 staff members. Combined, these events represent a loss of nearly 200 jobs over this period.
Directive 8020, Supermassive's most recent release, launched in May of this year. The game had previously been delayed from its original October 2025 release window. Critically, Supermassive's recent titles have not achieved widespread acclaim. Directive 8020 currently holds a Metascore of 72, Little Nightmares 3 has a 71, and The Casting of Frank Stone is at 68. It is also noted that the anticipated Until Dawn 2 is being developed by a different studio.
These layoffs at Supermassive Games occur amidst a broader trend of significant workforce reductions within the video game industry. Numerous studios and publishers have undergone similar restructuring and downsizing in recent years. Notable examples from 2026 include Battlefield Studios, Bungie's Destiny 2 team, and extensive layoffs at Microsoft-owned studios, impacting thousands of employees across the sector.