Phoenix Labs, known for developing games like Dauntless and Fae Farm, has made the difficult decision to lay off the majority of its staff as stated in recent updates shared on Reddit and LinkedIn. The studio described this move as unfortunate yet essential for their operational adjustments.

“We recognize and deeply appreciate the contributions of every individual impacted. Their talent, dedication, and creativity have left an indelible mark on our company and our games. We will share more details in the coming weeks about what this means for Dauntless and Fae Farm. For now, our focus is on supporting those affected through this transition.”

This lays off a significant part of the studio, following a previous round in May 2024 when many employees lost their jobs amidst a restructuring that aimed to ensure the studio’s survival.

The most recent layoffs come after the controversial launch of Dauntless on Steam, which faced backlash due to a significant update that rolled back player progress and introduced a monetization scheme that was poorly received, resulting in overwhelmingly negative reviews.

Despite the recent changes, the announcements did not reveal how many employees were affected, but comments from employees suggest that the situation could indicate a potential closure. Joshua Hood, a former lead designer at Phoenix Labs, noted in a LinkedIn post earlier today that the decision may lead to the shutdown of the studio.