‘Most’ of Star Wars Zero Company Studio Bit Reactor Furloughed Ahead of Launch

Maryland-based game studio Bit Reactor faced a bittersweet launch for its debut title, Star Wars Zero Company. While the tactical combat game released to stellar reviews and became a top-selling game on Steam for PS5, Xbox Series consoles, and PC, much of the development team went without pay after being furloughed just weeks ahead of the release.

A representative for Bit Reactor confirmed to Game File that the studio furloughed many workers prior to the release, describing it as a difficult decision made before knowing how the launch would perform. The representative stated that the decision belonged solely to Bit Reactor, independent of publisher Electronic Arts or license holder Disney. Although the studio representative declined to comment on the exact scale, a previously unreported 2024 lawsuit brought by studio co-founder Alison Kelly noted in an August filing that Bit Reactor had furloughed most of its employees and terminated contractors. Sources estimated the impact affected roughly 80 percent of the team, leaving behind only a skeleton crew to manage post-launch bug fixes.

The furloughs occurred because the studio, founded in 2021, had run out of most of its capital just before its first game reached the market. Zachariah Scott, a senior technical artist who departed the studio in May, stated publicly that the studio had concealed the furloughs. While a Bit Reactor representative expressed hope that successful sales would allow the studio to bring furloughed workers back with restored pay, former staff members expressed skepticism regarding whether everyone would be rehired.

Alongside the financial strain, Bit Reactor has been navigating a legal dispute between co-founder Alison Kelly and co-founder Greg Foertsch. Kelly, who served as chief operating officer until 2024, sued Foertsch alleging breach of contract and unjust enrichment after claiming she was pushed out, seeking damages exceeding $20 million. Foertsch's side has contested her claim of co-ownership and raised disputes regarding job performance. The ongoing litigation, which revealed the employee furloughs in court filings, has been postponed for trial until early 2027.