Skydance Games Cuts Staff Amid Reorg One Month After Warner Bros. Merger

Skydance Games has laid off at least 25 people as part of a reorganization and “operational shifts” across a few areas of its business.“As part of our ongoing efforts to position Skydance Games for long-term growth and success, we are implementing reorganization and operational shifts across a few areas of our business. We have stepped back and taken some time to consider where we are investing our efforts and have made the difficult decision to scale down some of our projects,” a Skydance spokesperson told TheWrap. “As a result, there are roles impacted. This is not a reflection of the talent, dedication, or creativity of those affected and we are grateful for their contributions. We are committed to approaching the process with transparency, care and respect for those who are leaving the company.” The total number of Skydance Games employees impacted is unclear. However, in a LinkedIn post over the weekend, Paramount Games Lead Engineer David Vera revealed that at least 25 of his colleagues have been laid off, ranging from producers, writers and engineers to audio and level designers and 2D, 3D, VFX and tech artists. In a separate post, Skydance Games Senior Gameplay and Game AI Programmer Rebecca Vessel said she remains with the company, but that most of her game team was included in the layoffs. “The Skydance crew wasn’t let go because of performance or problematic behaviors,” Vera wrote. “These are all extremely worthy folks who were pushing themselves to the limit to try to make something they could all be proud of.” The move comes as Skydance is set to report its third-quarter earnings after the bell on Monday — its first since closing the $110 billion Paramount-Warner Bros. Discovery merger. As part of the deal, the company is looking to find at least $6 billion in cost savings from areas including real estate, marketing, technology, procurement and an unspecified number of layoffs. Skydance has offered some employees voluntary buyouts ahead of the formal layoff announcement and is shifting to a mandatory in-office policy of five days per week. It also comes after the company launched Paramount Games Studio in June, which is led by Tony Driscoll and focuses on developing everything from casual to AAA titles based on the company’s portfolio of IP. The division’s titles include “Teenage Mutant Ninja Turtles: The Last Ronin,” “Avatar Legends: The Fighting Game,” “Marvel 1943: Rise of Hydra” and an untitled Star Wars game. Previous Skydance Interactive titles include “The Walking Dead: Saints & Sinners,” “Archangel,” and “Behemoth.” Meanwhile, Warner Bros. Games is home to developers including Rocksteady Studios, TT Games, NetherRealm Studios, Portkey Games and Avalanche Software, as well as WB Games Boston, New York, Montreal and San Francisco. Their notable titles include “Hogwarts: Legacy” and the Mortal Kombat and Batman: Arkham franchises.