Phoenix Labs, developer of Dauntless and Fae Farm, has laid off the majority of its workforce as part of necessary but unfortunate operational changes. The studio announced the decision via LinkedIn, though the exact number of employees impacted was not disclosed. The company expressed deep appreciation for the contributions of those affected and pledged to provide further details in the coming weeks about how these layoffs will impact Dauntless and Fae Farm.

This move comes after Phoenix Labs underwent significant restructuring following its 2023 acquisition by blockchain firm Forte Labs. The studio had previously laid off over 160 staff members and canceled most of its in-development projects, leaving Dauntless and Fae Farm as its primary focus. However, Dauntless’s most recent Awakening update, launched in December, was met with negative feedback from players and critics alike. This led to the delay of the Umbral Reign season, raising concerns about the studio’s ability to continue supporting the game.

The impact on Fae Farm remains unclear, as Phoenix Labs has not provided details about its plans for the title. Despite the challenges, the studio remains committed to supporting the affected employees and encourages industry peers to consider them for future opportunities.

This follows a troubling trend in the gaming industry, with other major layoffs being reported recently. For example, Ubisoft also made waves with the closure of its UK studio and global staff reductions. As the industry continues to see job cuts, it remains to be seen how these shifts will affect the development of key titles moving forward.