Following disappointing financial results for the first half of 2024, Don’t Nod plans to lay off up to 69 employees, affecting 29% of its Paris workforce. This move, linked to poor sales from Jusant and Banishers: Ghosts of New Eden, has sparked criticism from the Syndicat des Travailleurs du Jeu Vidéo (STJV), which blames management for project mismanagement and negative employee impacts. Don’t Nod continues to develop titles, including Life is Strange: Double Exposure, set to release on October 29, 2024.
After revealing financial results for the first half of 2024, which showcased the underwhelming performance of Jusant and Banishers: Ghosts of New Eden, the company is contemplating layoffs of up to 69 employees. This concerning development has triggered backlash from the Syndicat des Travailleurs du Jeu Vidéo (STJV), which has openly criticized the studio’s leadership.
In better news, the next installment in the Life is Strange series, Double Exposure, is slated for release on October 29, 2024, and has been developed by Deck Nine Games.
Streamlining Operations to Address Financial Setbacks
On October 16, 2024, Don’t Nod CEO Oskar Guilbert announced that the studio has introduced a reorganization plan aimed at its staff representatives. This initiative comes in response to an 11% year-on-year decrease in operating revenue, which Guilbert attributes to the disappointing economic performance of its recent releases, despite favorable ratings on Metacritic:
‘The initial performance support measures rolled out last spring are proving inadequate for maintaining the company’s competitiveness‘, Guilbert remarked in the studio’s financial briefing.
The proposed reorganization could lead to layoffs impacting as many as 69 employees, representing 29% of the Paris studio’s workforce. The goal is to secure financial stability and enhance the flexibility of the organizational structure. Although this decision is tough, Oskar Guilbert has expressed a commitment to promoting social dialogue and negotiating terms that may include voluntary redundancies if the plan is approved.
STJV’s Criticism and Response
In light of these circumstances, the Syndicat des Travailleurs du Jeu Vidéo (STJV) has publicly condemned the redundancy plan, describing it as ‘the culmination of a series of disastrous decisions‘ in a press release. The STJV holds Don’t Nod’s management responsible for poor project oversight and emphasizes the adverse psychosocial effects on employees, leading to increased sick leave and pervasive job insecurity.
The STJV previously warned of potential fallout from the lackluster performance of Jusant and Banishers, asserting that the management of development teams has been inadequate. The union accuses the leaders of shifting blame onto employees for their shortcomings and urges workers to unite to safeguard their positions and enhance working conditions.
In addition to the anticipated layoffs, Don’t Nod has opted to pause two unannounced projects and shift focus to existing titles in order to appeal to a broader audience. This strategic pivot follows the disappointing sales figures for Jusant and Banishers, which did not meet projected commercial goals.
Despite these challenging times, Don’t Nod is actively advancing multiple projects, including Lost Records, along with two additional titles expected to launch by the end of 2027.
Life is Strange: Double Exposure will be released on October 29, 2024, on PC, PlayStation 5, and Xbox Series. Players can purchase the Ultimate Edition for €79.99, which includes access to the first two episodes.
The announcement of Life is Strange: Double Exposure was a delightful surprise for franchise enthusiasts who were not anticipating the return of Max Caufield. However, some details regarding the game’s editions have dampened the excitement for players.
Although widely recognized for Life is Strange, the French studio Don’t Nod has been striving to diversify its portfolio for several years. Unfortunately, their last two game releases fell short of expectations, prompting the suspension of two ongoing projects.