Skydance Games has confirmed layoffs across its gaming division following the October 2026 merger between Paramount Skydance and Warner Bros. Discovery. At least 25 employees have reportedly lost their jobs as the newly combined company restructures its development operations and reduces investment in certain projects.
The workforce reductions were confirmed on November 9 through a company spokesperson, who acknowledged that organizational changes and adjustments to development priorities had resulted in job losses. Although Skydance has not disclosed the total number of affected employees, public statements from developers indicate that multiple teams and disciplines have been impacted.
TheWrap reported that Paramount Games lead engineer David Vera identified at least 25 colleagues who had been laid off in a LinkedIn post. The affected employees included producers, writers, engineers, audio and level designers, and artists working across 2D, 3D, visual effects and technical disciplines.
Skydance Games senior gameplay and game AI programmer Rebecca Vessal also disclosed that most of her team had been laid off, although she remained employed. Separately, Insider Gaming reported that at least 30 employees had been affected, suggesting the total could exceed the 25 individuals publicly identified.
Skydance has not independently confirmed either figure.
In a statement provided to TheWrap and Variety, a Skydance spokesperson explained that the company was reviewing its investment priorities as part of a broader restructuring.
“We have stepped back and taken some time to consider where we are investing our efforts and have made the difficult decision to scale down some of our projects,” the spokesperson said.
The company confirmed that these changes had affected staffing but emphasized that the departures were unrelated to employees’ individual performance or abilities.
Skydance also expressed appreciation for the affected developers and said it intended to manage the restructuring with transparency and respect.
The layoffs follow the October 6 completion of the approximately $110 billion merger between Paramount Skydance and Warner Bros. Discovery. The transaction brought their gaming operations under the same corporate ownership, creating a larger organization with development teams responsible for several established franchises.
Paramount had already announced Paramount Games Studio in June 2026, combining its existing gaming businesses, including Skydance Interactive and Skydance New Media. The subsequent merger expanded the wider organization’s gaming portfolio to include Warner Bros. Games developers such as Rocksteady Studios, NetherRealm Studios, Avalanche Software and TT Games.
The combined business now encompasses projects and franchises associated with Batman, Mortal Kombat, Hogwarts Legacy, Teenage Mutant Ninja Turtles and other major entertainment properties.
The restructuring also takes place as Skydance pursues at least $6 billion in cost savings following the merger. Those savings are expected to come from several areas of the wider business, including corporate operations, technology, marketing and workforce reductions.
However, Skydance has not identified which specific game projects are being scaled down or whether the affected teams were working on previously announced releases.
The company’s gaming portfolio includes projects such as Teenage Mutant Ninja Turtles: The Last Ronin and Marvel 1943: Rise of Hydra. Neither game has been identified by Skydance as affected by these layoffs, and the restructuring announcement does not establish that either project has been cancelled.
The reductions add to a period of workforce instability across the gaming industry. Other developers have faced similar staffing changes, including reported layoffs affecting 26 employees at Sucker Punch Productions and workforce concerns surrounding layoffs and development pressures at Electronic Arts.
Skydance’s confirmation establishes that some development projects are being reduced in scope, but the company has not detailed how those decisions will affect individual games, production schedules or release plans.
For now, the precise number of employees affected and the identities of the scaled-back projects remain undisclosed.
