Don't Nod faces mass layoffs: majority of Life is Strange developers could find themselves unemployed
Translated with AI from the Russian original.
The company has found itself on the brink of a major crisis.
French studio Don't Nod, known for the original Life is Strange, is on the verge of a major crisis. The company is considering a large-scale restructuring that could result in up to 85 layoffs.
In an effort to keep the business afloat, Don't Nod has initiated financial restructuring proceedings under French law.
According to Don't Nod's official financial report for the first half of 2026, the company's revenue from January through June amounted to €6.1 million, down 14% compared to the same period last year. Total operating income fell by 56% to €6.1 million, in part due to the lack of capitalized production costs.
In its official report, Don't Nod explicitly acknowledged that its ability to continue operations beyond January 31, 2027, depends on securing additional external funding. Management attributes the difficulties to unfavorable market conditions in the gaming industry and tighter financing requirements for projects.
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