External developer partner Virtuos has announced a round of layoffs affecting around seven percent of its workforce, effectively impacting 270 roles.
First reported by Origami reporter Gauthier Andres via Bluesky, the company addressed it with an official statement with the title “adapting for the future of game development.” Virtuos attributes the layoffs to an intention to “meet the changing needs” of its partners and the industry. The company is responding by “rebalancing” roles across its studios, primarily in teams “facing lower occupancy and slower demand due to structural shifts in the industry.”
The layoffs include 200 roles in Asia and 70 in Europe. Virtuos notes that the latter includes “fewer than 10 in France, where the core team working on Oblivion Remastered is located.”
Regarding the reason why the Asia teams had a greater impact, the company says while acquisitions in the last 12 months reflect an intent to grow in areas where its expertise and scale “create lasting value,” it is also “selectively exiting service segments where demand is weakening.”
“We need to better match the locations of our teams with those of our clients to support the increasingly iterative nature of creative co-development,” the statement reads.
Virtuos employees contribute greatly to triple-A game development
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Virtuous mentions that it’s providing separation packages, career transition assistance, and opportunities for redeployment across its global network “where possible.” The company also remains “fully committed” to existing partnerships, which includes “ongoing work” on Oblivion Remastered, Cyberpunk 2077, and Metal Gear Solid Delta: Snake Eater.
The external development studio has been taking multiple leaps in recent years. In June 2023, it shared details on a new initiative to make original games. Four months later, it shut down the San Francisco-based subsidiary Calypte, a mere year after opening. In the last year alone, however, Virtuos doubled down by acquiring co-developer Third Kind Studios, as well as Umanaïa, Pipeworks, and Abstraction. By January of this year, these new teams made for “over 1,200 triple-A caliber” workers spread across its 16 studios.