Phoenix Labs Makes Difficult Decisions, Lays Off Majority of Staff Amid Shifting Studio Dynamics
As part of “regrettable yet essential modifications to our operations”.
Phoenix Labs, the studio behind Mettlesome and Fae Farm, has announced another wave of layoffs – its fourth since May 2023 – impacting the “majority” of employees at the studio.
Having achieved early success with its debut title, the free-to-play Monster Hunter-like Mettlesome, the studio launched its second game, Fae Farm, in 2023. Nonetheless, the company has undergone several rounds of layoffs following its acquisition by blockchain company Stronghold Labs in 2023, beginning with a workforce reduction of 9 percent in May that year. An additional 34 layoffs occurred seven months later, leading to about 140 job cuts the following May. Regrettably for the employees, layoffs have persisted into 2025.
“Today marks yet another tough day at Phoenix Labs,” the developer shared in a post on LinkedIn on Monday. “We have made the challenging choice to part ways with the majority of the studio as part of regrettable yet essential modifications to our operations.”
“We acknowledge and sincerely appreciate the contributions of every individual affected,” it added. “Their skill, commitment, and innovation have left a lasting impact on our company and our games… To our industry colleagues, we encourage you to connect with these exceptional individuals – they are among the finest in the industry.”
Regarding Mettlesome and Fae Farm, the studio states that it will provide further updates on their future “in the coming weeks,” but emphasizes that its current priority is “supporting those affected during this transition.”
Phoenix Labs’ statement follows a challenging 2024 for the gaming industry, where approximately 13,000 employees are believed to have lost their jobs, and continues a January filled with further layoffs and studio closures. For instance, Ubisoft announced this week that it was laying off 185 employees.