Supermassive Games Announces Plans to Cut Up to 75 Jobs in Third Layoff Round

The UK-based studio Supermassive Games, renowned for its interactive horror titles like *Until Dawn* and *The Quarry*, has initiated a formal redundancy consultation process that could result in the loss of up to 75 jobs. The announcement, delivered via a brief statement on social media, marks the latest blow in an ongoing labor crisis that continues to reshape the video game industry. For a studio that once boasted a headcount of around 350 employees in 2023, this proposed reduction represents a significant contraction, further shrinking a workforce that had already been halved by previous restructuring efforts.[1][3]

The studio's management framed the impending cuts as a difficult but unavoidable measure. In their public statement, Supermassive described the redundancy process as a "necessary step to help ensure the sustainability of the company." The leadership team acknowledged the heavy toll the decision would take on the staff, pledging that their priority throughout the consultation period would be to provide support to all those impacted. However, the corporate messaging—echoing similar statements from across the sector—has done little to soften the blow for a workforce that has endured a relentless cycle of instability over the past two years.[2][4]

Indeed, this is the third major round of layoffs to hit the Guildford-based developer in less than three years. The studio previously eliminated approximately 90 positions in February 2024, citing significant industry challenges. That was followed by another reduction of roughly 35 roles in July 2025, a move that coincided with the delay of their highly anticipated sci-fi horror title, *Directive 8020*. The cumulative effect of these repeated cuts has left the remaining team in a state of perpetual uncertainty, reflecting a broader trend of studio downsizing that has plagued the gaming sector since the post-pandemic market correction began.[1][5]

The timing of this latest restructuring is particularly notable, coming just three months after the release of *Directive 8020*. The game, which serves as the Season Two premiere for *The Dark Pictures Anthology*, launched in May 2026 to a decidedly mixed reception. While some critics praised its polished visuals and shift toward more active gameplay mechanics, player response on platforms like Steam has been lukewarm. According to industry tracking data, the title sold an estimated 447,000 units across PC and consoles—a respectable figure for a niche horror game, but perhaps not the breakout commercial success needed to stabilize a studio of Supermassive's size.[1][4]

The financial pressures facing Supermassive are compounded by the shifting dynamics of their flagship franchises. While the studio built its reputation on the massive success of the 2015 PlayStation 4 exclusive *Until Dawn*, they are no longer at the helm of that property. The recent 2024 remake of the game was handled by a different developer, and the upcoming sequel, *Until Dawn 2*, is currently in production at Firesprite, one of Sony's first-party studios. Without the backing of their most famous IP, Supermassive has had to rely entirely on the performance of their anthology titles and spin-offs like the *Dead by Daylight* tie-in, *The Casting of Frank Stone*.[1][2]

The internal upheaval at Supermassive also extends to the executive level. In June 2026, just weeks after the launch of *Directive 8020*, the studio saw significant leadership turnover. Former executives, who had guided the studio through a period of intense growth and subsequent contraction, departed their roles, citing the need for a transition. This turnover at the top, combined with the ongoing layoffs, paints a picture of a company in the midst of a profound identity crisis, struggling to align its ambitious narrative-driven projects with the harsh economic realities of modern game development.[2][5]

Beyond the walls of Supermassive, the announcement serves as a grim reminder that the video game industry's labor crisis is far from over. Throughout 2026, major publishers and independent studios alike have continued to shed thousands of jobs, driven by rising development costs, stagnant growth in the console market, and a shift in consumer spending habits. From massive conglomerates like Microsoft to mid-sized developers, the wave of redundancies has spared almost no one, leaving a surplus of experienced talent competing for a dwindling number of open positions in an increasingly hostile job market.[3][7]

As the redundancy consultation process begins, the immediate future of Supermassive Games remains clouded in uncertainty. The studio has yet to publicly announce its next major project, and it is unclear how the loss of up to 75 more developers will impact the production pipeline for future installments of *The Dark Pictures Anthology*. For the workers whose livelihoods are now at risk, the coming weeks will be defined by difficult negotiations and the daunting prospect of re-entering an industry that seems fundamentally unable to sustain the workforce that built it.[1][6]