Life is Unusual and Misplaced Information developer Do not Nod has warned it might make 90 workers primarily based in France redundant as a way to guarantee its survival.
The ailing firm, which earlier this 12 months defined it was exploring ways to extend its cash runaway after earlier investor Tencent determined towards injecting extra funds into the enterprise, has confirmed it won’t have the ability to proceed working past January 31, 2027.
In a recent business update shared with investors, Do not Nod famous that working income declined by 56 p.c year-on-year in the course of the first half of the present fiscal 12 months. Working income didn’t cowl Do not Nod’s present working bills. In consequence, the corporate recorded an working EBITDA lack of €4.3 million for the primary half of 2026.
The studio blamed that downturn on “systemic pressures within the online game trade, characterised by extremely selective financing.” Do not Nod mentioned it should now adapt to “new market situations” to turn into extra aggressive.
As beforehand talked about, which means layoffs may very well be imminent.
“In opposition to this backdrop, the profound adjustments within the financial situations of the online game trade and its financing, mixed with the deterioration of Do not Nod’s key monetary indicators, are considerably affecting its competitiveness. The Firm subsequently believes it’s essential to adapt its enterprise mannequin,” the corporate instructed traders.
“With this in thoughts, Do not Nod is refocusing its operations in France round a single manufacturing line, bringing collectively the experience required to launch new initiatives earlier than the completion of present productions. This organizational initiative is meant to take care of a steady pipeline of initiatives and help the Firm’s long-term progress.”
Do not Nod mentioned the restructure will allow it to extra effectively allocate assets and refocus round precedence initiatives. The transfer has been accepted by the Do not Nod board of administrators. Studio administration has additionally commenced negotiations with union representatives.