The studio behind Life is Strange, Jusant, and Lost Records: Bloom & Rage is desperately struggling to stay afloat

Don’t Nod, the developer behind acclaimed titles including Life is Strange, Jusant, Lost Records, and Aphelion, has initiated safeguard proceedings as it faces mounting financial difficulties. The French studio is attempting to protect itself from creditors while restructuring its operations, with up to 85 employees at risk of redundancy.

This latest development marks an escalation of the studio’s ongoing financial crisis that began in 2024. A month prior, Don’t Nod warned it might lack sufficient funds to operate through January 2027, at which point the potential layoff figure stood at 90 employees. The recent restructuring plan has refined those numbers to 85 affected staff.

Safeguard proceedings represent a formal legal process designed to provide breathing room for struggling companies to reorganize their finances and operations. For Don’t Nod, the proceedings aim to buy time while the studio works toward stabilizing its financial situation amid a challenging period for independent game developers.

Sources