Enginefall developer Red Rover Interactive is making layoffs

Red Rover Interactive, a studio founded by industry veterans from Funcom, Bohemia Interactive, and Lockwood Publishing, is conducting layoffs affecting an undisclosed number of employees across its Newcastle, UK and Oslo, Norway offices. The news emerges approximately three years after the studio’s public debut.

The studio raised $5 million in initial financing three years ago and has since doubled its backing, with PUBG developer Krafton leading a $15 million investment round in 2024, bringing total funding to $20 million. Red Rover Interactive is developing Enginefall, its debut title—a player-driven crafting shooter set aboard a sprawling train. The game is scheduled to launch in 2026 and has accumulated over 300,000 wishlists on Steam.

The layoffs suggest challenges in execution or market conditions despite the studio’s substantial financial backing aimed at accelerating Enginefall’s development. The specific number of affected employees and reasons for the workforce reduction have not been disclosed.

Sources