Embracer's Lost Boys Interactive Studio is hit with yet another round of layoffs

Lost Boys Interactive, an Embracer studio, has gone through a second round layoffs. In a message on LinkedIn it said that "we have made the difficult decision to reduce our headcount."

The studio stated in its announcement that "as a codevelopment partner studio, Lost Boys' projects and priorities are directly influenced" by our development clients. "The need to adjust to changing market conditions within videogame industry required us to reassess and align our operations with the evolving needs our business and our partner."

Shaun Nivens, CEO of Lost Boys, said that the decision to layoff employees was "difficult," and "only came after considering all other alternatives."

The studio did not specify the number of employees laid off, but said that the layoffs "impacted employees in several states." The cuts were deep. Former LBI art directors Francois Gilbert and Daniel Zinck, who was the lead character artist at the time, both called it a "massive layoff."

Lost Boys Interactive, founded in 2017, has worked as a studio of support on games such as The Quiet Man and Tiny Tina's Wonderlands. Diablo 4 and Homeworld 3 were also developed by the studio. Gearbox acquired it in 2022. Embracer Group had acquired Gearbox back in 2021. Lost Boys remained an Embracer Studio when Embracer sold the majority of Gearbox to Take-Two Interactive in early this year.

The studio cited "current industry challenges" as the reason for the January layoffs. That's a reference to the devastating contraction that's wracked the industry since the beginning of 2023, when studio executives--virtually all of whom remain employed--figured out that the spike in player counts and engagement seen during the early days of the Covid-19 pandemic wasn't actually going to last forever.