Don't Nod Considering Laying Off 90 Workers in France Amid Financial Struggles

Developer Don't Nod has announced that it may lay off up to 90 employees based in France as part of a newly approved restructuring plan and business model. The company, known for titles such as Life is Strange and Lost Records, warned in a financial update that there is material uncertainty regarding its ability to continue operating beyond January 31, 2027, unless it secures additional external financing to cover its business operations and project development needs.

According to the company's business update shared with investors, operating revenue declined by 56 percent year-on-year during the first half of the current fiscal year, failing to cover current operating expenses and resulting in an operating EBITDA loss of €4.3 million. Don't Nod recorded a consolidated gross cash amount of €8.0 million by the end of July 2026. Studio management attributed the financial downturn to systemic pressures and highly selective financing across the video game industry, alongside the choice by investor Tencent not to inject further funds into the business earlier in the year.

CEO Oskar Guilbert noted that the first-half financial performance confirms major challenges facing the industry, stating that the measures being considered are difficult while emphasizing that the plan is essential to ensure continued operations. As part of the transformation project approved by the board of directors, Don't Nod is refocusing its operations in France around a single production line. This organizational initiative aims to maintain a continuous pipeline of projects, improve resource allocation, and refocus expertise on priority projects.

Studio management has commenced negotiations with union representatives and employee bodies to discuss a job protection plan. The company hopes to establish necessary support measures for affected staff while adapting its business model to the altered economic conditions of the video game market.