Until Dawn and Little Nightmares 3 studio Supermassive announces further layoffs, with as many as 75 people expected to lose their jobs

Supermassive Games, the UK developer behind Until Dawn, The Dark Pictures Anthology, Little Nightmares 3, and The Quarry, has announced its third round of significant layoffs in three years. The studio has begun a redundancy consultation process affecting up to 75 employees, describing the decision as “a necessary step to help ensure the sustainability of the company.”

The announcement comes approximately three months after the launch of Directive 8020, the studio’s latest Dark Pictures entry, which received mixed critical reception. The layoffs continue a pattern of downsizing that intensified in July 2024, when Supermassive cut 36 roles and postponed Directive 8020’s release. Prior reports indicated the studio had laid off 90 employees that year with up to 150 positions at risk.

These repeated rounds of redundancies raise questions about the long-term viability of Supermassive’s narrative-focused horror franchises and the studio’s financial sustainability. The cuts reflect broader challenges across the gaming industry, which has experienced widespread workforce reductions as studios adapt to shifting market conditions and economic pressures.

Until Dawn and Little Nightmares 3 studio Supermassive announces further layoffs, with as many as 75 people expected to lose their jobs

Sources