Life is Strange builders Do not Nod have acknowledged that there is “materials uncertainty relating to the corporate’s capacity to proceed as a going concern past January thirty first, 2027”, as they kick off negotiations with the union representing workers who could possibly be laid off as a part of a “transformation challenge”. The proposed cuts, which may see as much as 90 jobs eradicated, are the newest improvement within the studio’s efforts to make their monetary future look much less like a street to break which could run its course either this year or very early in 2027.
As noticed by our suit-wearing colleagues at Gamesindustry.biz, Do not Nod posted their financial results for the primary half of 2026 late final week, offering a bit extra info on the plans they’re placing in movement to begin making an attempt to show issues round by seemingly laying a bunch of individuals off.
“Consolidated gross money on the finish of June 2026 amounted to €9.8 million and €8.0 million on the finish of July 2026, in comparison with €15.4 million on the finish of 2025,” the corporate wrote. “Given the accessible money and the money move forecast, the corporate’s capacity to proceed operations relies upon partly on securing exterior financing to cowl enterprise operation and challenge improvement wants. This represents materials uncertainty relating to the corporate’s capacity to proceed as a going concern past January thirty first, 2027.”
As for the proposed layoffs as Do not Nod scramble to proper the ship, the studio famous that “as much as 90 positions” may be affected. The corporate’s administration have already begun negotiations with the union representing workers, after their board of administrators have accredited the “transformation” plans. The said purpose of these plans as of proper now could be a “refocusing” of Do not Nod’s operations in France “round a single manufacturing line, bringing collectively the experience required to launch new initiatives earlier than the completion of present productions”. The corporate declare this’ll imply “precedence initiatives” will get extra consideration, whereas useful resource allocation and tasks will probably be clearer.
Within the meantime, Do not Nod are “persevering with to look at probably the most applicable authorized and operational preparations to assist this transformation and make sure the continuity of [their] operations, in one of the best pursuits of all [their] stakeholders”. “The measures being thought of at present are tough; we absolutely admire what they could imply for the workers affected and are guaranteeing that the mandatory assist measures are put in place,” CEO Oskar Guilbert put it. “This plan is, nonetheless, important to making sure the Firm’s continued operations.”
Solidarity with any Do not Nod staff devs who find yourself being affected, if the studio do find yourself laying workers off. .