NACON Studio Kylotonn is Expecting Mass Layoffs Days After NACON Connect

NACON-owned developer Kylotonn is preparing to announce significant layoffs at the studio. The Kylotonn Union revealed that management scheduled a meeting for May 6th to inform workers of “massive layoffs,” but postponed it to May 13th. According to the union, the delay was strategically timed to avoid generating negative publicity during NACON’s annual NACON Connect event on May 7th.

The postponement highlights tensions between company leadership and its workforce. The union’s statement reflects longstanding concerns at the studio, citing years of warnings regarding Kylotonn’s financial instability. The union alleges the company has maintained authoritarian workplace practices that limited worker and union representation, alongside disorganized game development efforts under what they characterize as incompetent management.

The decision to defer the announcement also underscores broader frustrations within the studio. The union emphasized deteriorating working conditions that have persisted over an extended period, suggesting systemic issues beyond financial difficulties alone. The timing of the layoffs announcement, coming shortly after NACON’s flagship annual event, raises questions about the publisher’s operational health and may signal deeper challenges within the organization.

Sources