Tony Hawk’s Pro Skater 3+4 developer Iron Galaxy announces more layoffs after cuts in early 2025
Iron Galaxy Studios, the veteran developer known for Tony Hawk’s Pro Skater 3+4 and work on major franchises including Crash Bandicoot, Spyro, and Uncharted, has announced another round of layoffs amid challenging market conditions. While the number of affected workers remains undisclosed, this represents the second significant reduction at the studio in recent months, following 66 job losses in February 2025, which the company had previously characterized as a “last resort.”
In announcing the cuts via LinkedIn, Iron Galaxy attributed the layoffs to “current market conditions” and signaled a shift in its outlook for the industry. The company stated it must now “accept these current market conditions as permanent” rather than waiting for conditions to normalize, reflecting a growing resignation among game developers regarding the sustainability of current industry practices.
Founded in 2008, Iron Galaxy has built a diverse portfolio spanning both major third-party franchises and original titles. Beyond its headline work on Tony Hawk’s Pro Skater 3+4, the studio has contributed to ports and support development on games like Apex Legends and The Last of Us, while also creating original intellectual property including Extinction, Rumbleverse, and Divekick. The studio’s long history and varied experience have not insulated it from the widespread pressures affecting mid-size developers.
The repeated layoffs underscore the precarious position many development studios face amid industry consolidation, shifting market dynamics, and ongoing economic pressures within the gaming sector.