Gaming Industry Struggles: People Can Fly Faces Layoffs Amid Market Challenges

Recent events in the gaming industry highlight the ongoing challenges faced by many companies as they navigate difficult economic conditions.

In the past two years, the entertainment sector has undergone considerable interruptions, resulting in an increase in workforce reductions. According to reports, 10,500 individuals lost their jobs in 2023, and the unfortunate trend has continued into 2024, with an additional 14,600 layoffs.

With the holiday season approaching, the news remains grim. On a recent Tuesday evening, People Can Fly made an announcement on social media about the necessity to let go of approximately 120 employees. CEO Sebastian Wojciechowski shared insights into the situation:

The company made a tough choice to alter its self-publishing strategy by putting Project Victoria on hold, reducing the team on Project Bifrost, and reorganizing some of their support teams. The circumstances led them to reassess their operations due to ongoing market pressures that exceeded their expectations.

Wojciechowski emphasized that the gaming landscape is in constant flux, requiring the company to adapt to current realities. As part of the strategy moving moving ahead, there will be an intensified emphasis on new work-for-hire opportunities and the development of a singular independent title.

Earlier this year, People Can Fly also faced layoffs following Take-Two's withdrawal from Project Dagger, which was subsequently confirmed as closed. In addition to the cancellation of Project Victoria, Project Bifrost will now operate on a more limited basis. On a brighter note, the studio has an existing collaboration with Microsoft on Project Maverick, which appears unaffected by the recent difficulties.

As the situation unfolds, we hope that those impacted will be able to navigate these challenging times, particularly during this difficult holiday season.