Phoenix Labs: Dauntless Studio Faces Layoffs
Phoenix Labs, the creative minds behind popular games like Dauntless and Fae Farm, has recently announced another wave of layoffs, marking the fourth in a series of unfortunate events since May 2023. This time, the cuts will affect the “majority” of the studio’s employees, painting a grim picture for the future of the once-thriving game developer.
The journey for Phoenix Labs has been a rollercoaster ride, with early success from their hit title Dauntless, a free-to-play Monster-Hunter-like game. The studio followed up with the release of Fae Farm in 2023, but the tides shifted following its acquisition by blockchain company Forte Labs. Since then, Phoenix Labs has been hit with a series of layoffs, beginning with a 9 percent reduction in May 2023, followed by 34 more job cuts seven months later, and an additional 140 in May of the following year. Sadly, the trend of layoffs has persisted into 2025, casting a shadow over the company’s future.
In a heartfelt message shared on LinkedIn, Phoenix Labs acknowledged the difficult decision to part ways with the majority of their staff, citing “unfortunate but necessary changes to our operations.” The developer expressed gratitude for the contributions of every individual impacted, recognizing their talent, dedication, and creative imprint on the company and its games. A call to action was made to industry peers to consider hiring these exceptional individuals, highlighting their expertise in the field.
As the fate of Dauntless and Fae Farm hangs in the balance, Phoenix Labs promises to provide more updates in the coming weeks. Their immediate focus, however, lies in supporting those affected by the recent layoffs through this challenging transition period.
The announcement from Phoenix Labs comes amidst a turbulent period for the gaming industry, with an estimated 13,000 employees losing their jobs in 2024 alone. January has seen a flurry of layoffs and studio closures, with Ubisoft announcing 185 job cuts and Jar of Sparks, founded by Halo Infinite head of design Jerry Hook, revealing the layoff of its entire team earlier this month. These events raise concerns about the stability of the industry and the impact on talented individuals within it.
The landscape of the gaming industry is ever-evolving, with challenges and triumphs shaping the future of developers like Phoenix Labs. As the dust settles on this latest round of layoffs, the resilience of those affected and the industry as a whole will be put to the test. Only time will tell how Phoenix Labs navigates these stormy waters and what the future holds for its beloved games.