Iron Galaxy Studios lays off ‘a number’ of workers as it reduces company size

Iron Galaxy Studios has announced a second round of layoffs in as many years, reducing its workforce as it restructures to adapt to industry conditions. The Illinois-based independent developer did not specify the exact number of workers affected in this round, though reports suggest it could impact as many as 90 employees.

This comes just over a year after the studio laid off 66 employees in early 2025—representing 25% of its workforce at the time. That previous round was described by the studio as a “last resort” measure to ensure long-term survival, yet the company has determined additional reductions are necessary.

Iron Galaxy attributed the cuts to ongoing market conditions in the video game industry, which has experienced sustained turbulence since mid-2022. The studio acknowledged changing consumer behavior and shifts in publisher investment criteria, noting that “it’s time for us to evolve again.” The layoffs affect various team members, including David “Deej” Dague, a former Destiny community manager at Bungie who joined Iron Galaxy in 2020.

The studio, best known for its work on Tony Hawk’s Pro Skater 3+4, Killer Instinct seasons 2 and 3, and Rumbleverse, as well as numerous ports and co-development projects, has committed to supporting impacted employees through the transition.

Iron Galaxy Studios lays off ‘a number’ of workers as it reduces company size

Sources