Update: Tencent-owned Lightspeed LA lays off 68 staff
Lightspeed LA, the Los Angeles-based subsidiary of Chinese gaming giant Tencent, has confirmed a major layoff affecting 68 employees. According to a WARN notice obtained by This Week in Videogames, the cuts included several senior staff members, representing a significant restructuring at the studio.
The layoffs are directly tied to a strategic shift in creative and development direction for Last Sentinel, Lightspeed LA’s flagship project announced in 2023. Bloomberg reports reveal the title consumed six years of development time and hundreds of millions of dollars before the decision was made to redirect the project. Lightspeed stated the move followed “extensive internal reviews and play-testing” of the title.
The announcement reflects broader challenges within the gaming industry, particularly for large-scale projects under major publishers. Tencent-owned Lightspeed’s struggles with Last Sentinel underscore the financial and creative risks associated with complex, long-gestating game development cycles.