Embracer-owned studio Lost Boys Interactive has laid off an unspecified number of employees. Confirming the news on LinkedInThe study explained that the layoffs will impact employees in several states.
“Lost Boys Interactive has made the very difficult decision to reduce our overall headcount in accordance with local laws and consultation processes. As a remote company, this impacts employees in multiple states,” the statement reads.
“We are committed to supporting our affected staff in finding new positions as quickly as possible. Additionally, Lost Boys will work with other studios and recruiters to help them find job opportunities.”
Lost Boys is a co-development studio known for working on titles such as The wonders of little Tina, Diablo IVAND Role playing game. The company was acquired by Gearbox Software in 2022 when it was owned by Embracer.
Although Gearbox was divested from Embracer Earlier this year, Lost Boys stayed with the Swedish conglomerate, which has reduced its workforce by 4,500 employees and cancelled 80 projects during the last fiscal year.
Lost Boys said it was “directly influenced by the projects and priorities of its developer clients,” but also noted that it had struggled to secure work due to “changing market conditions” within the video game industry.
“Today is a challenging day for Lost Boys Interactive as we face the difficult decision to reduce our workforce. We recognize the impact this decision has on our team members, who have contributed greatly to our success,” said Lost Boys CEO Shaun Nivens.
“Decisions involving staff reductions are never taken lightly, and this action was taken only after considering all other options. We are committed to supporting them in any way we can during this transition.”
This is the second round of layoffs at Lost Boys in eight months. In JanuaryThe studio confirmed that it had laid off “some” employees so it could “succeed despite the headwinds the industry is going through right now.”
The company reiterated that it will continue to focus on providing comprehensive development services to its current partners and customers, and said that ongoing titles will not be affected by the latest cuts.
