Layoffs hit Galaxy on Fire, Chorus developer Fishlabs - sources
UPDATE: Embracer confirms 50 jobs losses.
UPDATE 5.30pm UK: Today's layoffs at Fishlabs have now been publicly confirmed, following our report earlier this afternoon.
In a statement, Fishlabs parent company Plaion (itself owned by Embracer) confirmed a "restructuring" at the studio "expected to impact around 50 positions".
"Despite exhaustive efforts to avoid downsizing, the lack of approval and therefore financing for the studio's unannounced project (also referred to as "Project Black") has made this step unavoidable," a spokesperson said today. "The remaining team will continue to work on the existing co-development projects in partnership with other Plaion and Embracer Group studios.
"We understand the profound impact of this decision on our talented team at Fishlabs and are committed to handling this transition with the utmost respect and care. To support those affected, Plaion is committed to providing comprehensive support, including severance packages as well help with career transition services."
Plaion exec Lars Janssen described the downsizing as a "tough moment". In a statement, Janssen said that "each individual at our Fishlabs studio has been more than just a team member; they've been a vital part of our creative journey, bringing not only their skills but also their passion and dedication to every project. We're truly thankful for the energy and heart they've invested in our collective endeavors. This painful decision is a reflection of the broader challenges in the gaming industry, not the incredible talents or efforts of our team."
ORIGINAL STORY 4pm UK: Fishlabs is the latest developer to see layoffs as part of the ongoing cuts at parent company Embracer, Eurogamer understands
Sources close to the studio informed Eurogamer of the layoffs today, after team members were told this morning. Around 50 positions are thought to be affected.
Eurogamer has contacted Embracer for comment.
Today's layoffs leave Fishlabs downsized for the forseeable future, Eurogamer understands. The developer previously had 95 staff, with a handful recently let go in September after a smaller project based on internal IP was cancelled.
Now, more than half the remaining team have been laid off, sources say - after Embracer told staff members that it was no longer moving forward with the developer's main project.
Fishlabs most recently released Chorus in 2021. Embracer subsequently stated that the game had not reached sales expectations.
The studio also assists with development work undertaken elsewhere, such as the Nintendo Switch ports of Saints Row The Third and Saints Row 4: Re-Elected, and the Xbox port of Valheim.
Eurogamer sources described the announcement as a surprise, especially so close to the end of the year. There's concern too for staff currently working in Hamburg on foreign work visas.
Earlier this month, Embracer confirmed it had laid off 900 staff over the past quarter, around five percent of its overall workforce, as part of its "comprehensive restructuring programme" announced in June.
These layoffs include job losses at Tomb Raider developer Crystal Dynamics and Mythforce developer Beamdog, as well as reports that TimeSplitters developer Free Radical Design is being shuttered.