Game development studio Virtuos is laying off about 300 employees, or about 7% of its workforce.

The Singapore-based company has over 4,200 staff across offices in the US, Europe, and Asia.

Most of the layoffs are expected to occur in China, where around 200 positions will be eliminated.

Teams in France, involved in the recent release of Oblivion Remastered, will also be affected.

Despite the cuts, there have been no reported issues with the company’s recent projects or their reception.

🔗 Source: Engadget

🧠 Food for thought

1️⃣ The paradox of game industry layoffs: success doesn’t guarantee stability

Virtuos is cutting jobs despite having successful, high-profile projects like Oblivion Remastered, a pattern seen repeatedly across the industry.

This mirrors Activision Blizzard’s 2019 decision to lay off 800 employees despite reporting record revenues of $7.5 billion the previous year, highlighting how financial success doesn’t necessarily translate to job security1.

The disconnect often stems from royalty structures and contract arrangements. Virtuos reportedly didn’t receive royalties from Oblivion Remastered despite its commercial success, contributing to their financial strain2.

This industry-wide pattern suggests a fundamental misalignment between business models and workforce stability, where project completion often triggers layoffs regardless of game performance.

Even support studios providing essential services for successful ongoing games, as Virtuos does for titles like Sea of Thieves and Dune: Awakening, remain vulnerable to workforce reductions despite having seemingly steady work pipelines.

2️⃣ The revolving door: gaming’s talent retention crisis

The Virtuos layoffs represent another chapter in the industry’s long-standing struggle to retain experienced talent, with data showing alarming turnover rates.

Industry surveys reveal that 32% of developers had worked in gaming for less than six years, while only 17% had remained for 7-10 years, statistics indicating a significant mid-career exodus3.