Lost Boys Interactive, an Embracer-owned studio, has unfortunately undergone significant layoffs, according to former producer Jared Pace’s LinkedIn post.

Described as a “wholly owned yet independent subsidiary of Gearbox Software” and a “proud member of the Embracer Group,” the studio has notable credits like Square Enix’s The Quiet Man, Tiny Tina’s Wonderlands, and Diablo 4. Despite becoming a Gearbox studio less than two years ago, in June 2022, the recent layoffs have affected a substantial portion of the workforce, including Pace and several other employees.

Art director Nick Barone expressed the impact, describing it as “the hardest day of my career.” While he was spared from the layoff, Barone acknowledged the loss of many talented colleagues and emphasized the meaningful relationships formed within the studio. Concept artist Patricia Lna-Anh D. echoed the sentiment, sharing positive memories of her time at Lost Boys Interactive and expressing best wishes for those affected.

The video game and tech industry faced widespread layoffs in 2023, and the trend continues into 2024. Companies such as Bossa Studios, Unity, Twitch, and Discord have already made significant staff cuts, attributing them to aggressive expansion during the initial years of the Covid-19 pandemic. Embracer Group, facing unique challenges after a failed $2 billion investment deal, has been restructuring, resulting in layoffs across its studios and the closure of Versus Evil, Free Radical Design, Campfire Cabal, and Volition.