Don’t Nod considering laying off 90 workers in France

Life is Strange developer Don’t Nod faces a critical financial crisis, with the studio warning investors of “material uncertainty” regarding its ability to continue operations beyond January 31, 2027. The company is considering laying off up to 90 employees based in France as part of a transformation project aimed at ensuring survival.

The studio’s financial deterioration stems from consecutive underperforming releases. In 2024, titles Jusant and Banishers: Ghosts of New Eden both sold well below expectations, prompting the studio to pause development on two additional projects. Although Lost Records launched in 2025, it failed to reverse the downward financial trend. Most recently, Aphelion also disappointed commercially.

Contributing to the crisis, previous major investor Tencent declined to inject additional funding into the business. Don’t Nod’s operating revenue plummeted 56% year-on-year during the first half of the current fiscal year. The studio previously laid off several employees in 2025 following Lost Records’ underperformance.

Negotiations with the union representing affected staff have commenced regarding the potential redundancies. The company urgently needs to secure external financing to avoid closure within months. Without intervention, Don’t Nod may cease operations by early 2027, marking a significant loss for the gaming industry given its acclaimed work on the Life is Strange franchise.

Sources

• Don’t Nod considering laying off 90 workers in France
• Don’t Nod might not have enough cash to make it through January 2027, and even if it does, pulling up could ‘involve the reduction of up to 90 positions’
• “Material uncertainty” hangs over the future of Life is Strange developers Don’t Nod beyond January 2027, as negotiations over potential layoffs begin
• Life is Strange studio Don’t Nod says it may have to lay off 90 staff, warns it may not last beyond January