Life is Strange and Aphelion developer Don't Nod faces potential layoffs amid new restructuring

Independent video game developer and publisher Don't Nod, known for creating the Life is Strange series alongside titles such as Remember Me, Vampyr, Banishers, Jusant, and most recently Aphelion, appears to be facing another round of potential layoffs. The studio announced that it is embarking on a transformation initiative to maintain its competitiveness against a backdrop of profound changes in the economic conditions of the video game industry and its funding, coupled with a deterioration in the Group's key economic indicators.

While layoffs are not explicitly mentioned in the initial framing, the company confirmed that management has convened the employee representative bodies for a meeting scheduled for Thursday, September 3, 2026. This gathering serves as the first meeting under the information and consultation procedure with the Social and Economic Committee prior to the possible implementation of a job-preservation plan. Simultaneously, management has entered into negotiations with the trade union representing employees within the company.

Following a meeting of the Board of Directors and the employee representative bodies, the company stated it will disclose the key elements and next steps of the transformation plan to the market after the close of trading on September 3, 2026, in accordance with its regulatory obligations regarding market disclosure. This development follows previous financial disclosures in June indicating that the studio was facing severe cash constraints, alongside recent challenges with its releases. Don't Nod previously experienced layoffs at its Montreal-based studio and has reportedly scaled back plans for its in-development project, Project P14.