Developer Phoenix Labs is undergoing a significant "reorganization" that's led to big job cuts and the cancellation of a game that was apparently mere weeks away from its reveal.
Phoenix Labs previously made the free-to-play co-op action game Dauntless in 2019, and the very different but still well-received crafty life sim Fae Farm just last year. According to some laid off developers, the studio was "weeks away from announcing" its next project, which was "abruptly canceled" after three years of work.
In a LinkedIn announcement, the company said it was going through a "significant restructure" after a "long period of evaluating how to navigate our economic environment." Phoenix Labs will now "focus on our best-in-class live service titles, Dauntless and Fae Farm, and serving their communities" - thus, the decision to scrap other projects. The statement claims this "truly has been the last resort to ensure Phoenix Labs can survive, and thrive in the long term."
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"Heartbroken to say that after three years working at Phoenix Labs with some of the most talented folks I've ever met, our project has been abruptly canceled, and I am now looking for some new opportunities," senior concept artist Charlène Le Scanff tweeted yesterday.
"My project, that I've been pouring my heart and soul into for three years, has just been canceled at Phoenix Labs, and myself and the entire incredible team have been fired," concept artist Nicholas Kole added in another tweet, "We were weeks away from announcing – I'm just numb and heartbroken, but I'm definitely available for work now."
Phoenix Labs didn't specify how many people are losing their jobs, but former principal engineer Kris Morness claimed "about 140" employees were impacted in a follow-up post.
"Phoenix Labs was acquired by Forte over a year ago. Forte just canceled all projects in development including the game we were announcing in 1 month," Morness added in a comment.
Layoffs, corporate reorganizations, and studio shutdowns have become more than a weekly occurrence in the games industry, with fellow cozy studio Singularity 6 going through a third round of cutbacks only yesterday, leaving chill MMO Palia in a not-so-chill spot.
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