Uncertainty continues for employees at Eidos Montreal after the studio, owned by Embracer Group, initiated another series of layoffs. Reports from staff on professional networks surfaced last week, citing significant job losses across various departments. This event marks the second workforce reduction at Eidos Montreal in 2025 alone. Studio morale has been affected, with team members sharing their experiences of unexpectedly losing their positions. These ongoing cuts underscore a period of turbulence within Embracer’s operations, with many employees now searching for new roles in the industry.
Previously, when Eidos Montreal conducted layoffs earlier in 2024 and 2025, the focus was on restructuring and studio realignment following project closures, including the cancellation of an unnamed Deus Ex game. Unlike current developments, earlier statements from Embracer Group and Eidos Montreal included some explanations of the studio’s direction. While the previous layoffs seemed tied to specific project terminations, new reports suggest more widespread impacts, affecting almost all teams regardless of current assignments. The shift toward supporting external projects and collaboration with other studios, such as on the Fable reboot and Grounded 2, signals a marked departure from Eidos Montreal’s earlier position as a lead developer for its own franchises.
Which Projects Remain at Eidos Montreal?
Most of Eidos Montreal’s internal projects, including those yet to be officially announced, have reportedly been shelved. The studio’s main focus now lies in co-developing titles with partner studios, particularly supporting Obsidian’s Grounded 2 and contributing to Playground Games’ Fable reboot. This shift has meant that original development work has mostly been supplanted by collaborative support roles, with remaining staff redirected accordingly.
How Has Embracer Group’s Restructuring Impacted the Industry?
The latest actions at Eidos Montreal follow a broader trend of layoffs and closures across Embracer Group properties. After a failed $2 billion financing deal in 2023, Embracer implemented major cutbacks within its portfolio, affecting nearly 1,400 employees within six months, a figure that has only increased. This turbulence was not isolated to Eidos Montreal—other Embracer-owned studios, like Crystal Dynamics, also experienced multiple rounds of layoffs throughout 2025, reflecting ongoing instability within the group.
What Are the Next Steps for Staff and Studio?
As many former employees publicly share their job search updates, statements from within the studio convey frustration and disappointment over the situation. One affected team member summarized the mood:
“We had to part ways with some incredible talent due to *gestures at everything*.”
While studio management has not provided direct public comment, internal communications reflect difficult choices being made. Another staff member stated:
“We don’t have the capacity to entirely reallocate them to our other ongoing projects.”
The lack of transparency has fueled continued speculation about Eidos Montreal’s future role within Embracer Group and its long-term project pipeline.
Layoffs in gaming have become more frequent, particularly in companies undergoing structural changes after ambitious expansion strategies. For employees and industry observers, watching Eidos Montreal shift from creative lead to supporting partner opens questions about the viability of such models under larger corporate umbrellas. For those remaining at the studio, adapting to roles as co-developers may require new skillsets and flexibility, while former staff may find opportunities beyond the traditional bounds of major gaming publishers. When considering job stability in the sector, understanding how decisions made at the highest corporate levels directly influence team structures and career prospects is vital. Workers facing similar uncertainties can benefit by proactively building networks and maintaining adaptable portfolios as the industry iterates its priorities.
