Don't Nod facing 'potential reorganization' and layoffs amid 2024's first-half struggles

Update (10/16/2024): French game development union STJV condemned Don't Nod's potential layoffs in a translated statement, calling it "the climax of a series of catastrophic decisions, denounced for a long time by workers' representatives."

The STJV claims Don't Nod exhibited "red warning lights" for months, from Jusant and Banishers' underperformance to the alleged dissolution of the former's production team and claims of mismanagement first reported in February.

At the time of those allegations, the mismanagement was reportedly due to an earlier reorganization effort. The union noted how nearly a year later, "this has proven to be disavowed and useless, exactly as we had predicted."

The union said both it and Don't Nod "cannot tolerate the blame for the company's failures being placed on its employees. [...] We call on all Don’t Nod workers to mobilize now to save their jobs and working conditions."

Drawing parallels with the similar drive for better working conditions at Ubisoft, the STJV called on Don't Nod staff to "establish the balance of power necessary to save our jobs. There is no question of paying for the mistakes of our bosses."

You can read the union's full statement (in French) here.

Original story: Don't Nod's weak financials for the first half of 2024 (January 1-June 30, 2024) may lead to the French studio laying off staff.

This possible "reorganization project" may result in up to 69 jobs being eliminated, said CEO Oskar Guilbert. The effort would "restore more organizational agility, rationalize the number of the company production lines, and secure the company financing."

Last month, Don't Nod posted "disappointing" first-half declines. At the time, it also indicated it may change its roadmap for the next several years, with a renewed focus on 2025's Lost Records: Bloom & Rage.

Guilbert stated management has already conveyed this potential reorganization to staff representatives. Like the UK, French law requires a company to first consult with staff representatives if more than ten employees (if the headcount is larger than at least 50 people) are being let go.

He further stated Don't Nod leaders are "committed to fostering a dialogue...with the aim of reaching agreements on accompanying social measures, including the possibility of a voluntary redundancy plan, should the project be adopted."

As previously reported, Don't Nod's operational revenue in the first half of 2024 reached €14.6 million (or $16.29 million), down 11 percent from 2023's first half. Development revenue also fell during this time with Banishers: Ghost of New Eden's launch and no other projects in development.

Both Jusant and Banishers missed their expected sales targets, leading the studio to pause work on two unannounced projects from Don't Nod's Paris team in a €7.6 million (or $8.26 million) writedown.

In the newest report, Guilbert reiterated Don't Nod's commitment to the development of Lost Records and two unannounced projects ("P10" and "P14") it hopes to release before the end of 2027.