Embracer studio Lost Boys Interactive confirms another round of layoffs

Embracer-owned studio Lost Boys Interactive has laid off an unknown number of employees. Confirming the news on LinkedIn, the studio explained the redundancies will impact employees across 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 first company, this impacts employees across several states," reads the statement.

"We are committed to supporting our affected staff in finding new positions as quickly as possible. Additionally, Lost Boys will collaborate with other studios and recruiters to help connect them with job opportunities."

Lost Boys under Gearbox and Embracer

Lost Boys is a co-development studio known for working on titles like Tiny Tina's Wonderlands, Diablo IV, and PUBG. The company was acquired by Gearbox Software in 2022 when it was under the ownership of Embracer.

Although Gearbox was divested by Embracer earlier this year, Lost Boys remained with the Swedish conglomerate—which reduced its headcount by 4,500 employees and cancelled 80 projects during the last fiscal year.

Lost Boys said it is "directly influenced by the projects and priories of its development clients," but indicated it has struggled to secure work due to "shifting market conditions" within the 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 of this decision on our team members, who have contributed greatly to our success," commented Lost Boys CEO, Shaun Nivens.

"Decisions involving staff reductions are never made lightly, and this action was taken only after considering all other options. We are committed to supporting them in every way we can during this transition."

This is the second round of layoffs at Lost Boys in the space of eight months. Back in January, the studio confirmed it had laid off "some" so it could "succeed in spite of headwinds facing the industry right now."

The company has reiterated it remains focused on delivering full development services to its current partners and clients, and said ongoing titles won't be impacted by the latest cuts.