Playtonic Games, the developer behind the beloved Yooka-Laylee, has made the difficult decision to reduce its workforce, confirming reports of layoffs shared by former employees. In a public statement, the studio acknowledged the ongoing transformations within the gaming industry, noting:

“We’ve all seen in recent years how the games industry has been changing, resulting in studio after studio finding themselves in situations where to continue to exist, they must make painful decisions—decisions that impact the lives of so many individual talented developers.”

The exact number of employees affected has not been disclosed, although some reports suggest around 14 individuals from production, art, and design teams have been impacted. Playtonic’s representative emphasized the challenges faced by the studio in navigating these changes.

Founded by former Rare employees in 2014, Playtonic rose to prominence with the release of Yooka-Laylee in 2017, a spiritual successor to the critically acclaimed Banjo-Kazooie. Following this, the team released Yooka-Laylee and the Impossible Lair in 2019 and has since ventured into publishing with its Playtonic Friends initiative.

Recent industry-wide layoffs and cancellations have added to the unrest in the video game sector, reflecting the pressures studios face as they adapt to new funding models and player expectations.