Warner Bros. Montréal developers report layoffs

Several developers from Warner Bros. Montréal have announced on LinkedIn that they have been laid off, with most finishing on Friday, 13th March. No formal confirmation from the company has been issued yet. The reports come amid ongoing struggles in Warner Bros.' games division.

Developers across various disciplines at Warner Bros. Montréal have taken to LinkedIn to state they are seeking new work after being let go. They indicate their employment ended on Friday, 13th March, though Warner Bros. Games has not yet formally confirmed the layoffs. Eurogamer has reached out to the company for comment but received no response at the time of reporting. These developments align with remarks from Netflix CEO Ted Sarandos, who noted that Paramount's outbid for control of Warner Bros.—including its games division over Netflix—would be dependent on a lot of cost-cutting. Warner Bros. has faced challenges in gaming for some time. Its 2025 Q1 earnings report showed a 48 percent drop in games revenue, attributed to no new releases. This follows several setbacks: cancellation of a Hogwarts Legacy expansion, layoffs at Rocksteady after Suicide Squad's poor performance, cancellation of Monolith Productions' Wonder Woman game, and the shutdown of Multiversus. The company's most recent earnings report described 2025 as a significant year and mentioned rebuilding its video game pipeline after acquisition by Paramount Skydance. However, the broader Studios segment, including gaming, experienced a 14 percent year-on-year revenue decline.

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Warner Bros. Games executive announcing returns to major franchises like Hogwarts Legacy in 2027-28 at a press conference.
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Warner Bros. Games teases returns to major franchises in 2027-28

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Warner Bros. Games has announced plans to return to its biggest franchises in 2027 and 2028, following a period of resets and challenges. The publisher's leader highlighted upcoming releases after recent flops and studio changes. This comes amid speculation about sequels to popular titles like Hogwarts Legacy.

Embracer-owned Eidos Montreal has laid off 124 employees due to changing project needs. Studio head David Anfossi, a 19-year veteran, is also departing. The studio described the cuts as necessary to focus efforts where it can be most effective.

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Chicago-based game studio Iron Galaxy has laid off dozens of employees as it adapts to changes in the gaming industry. The announcement follows the release of the Tony Hawk’s Pro Skater 3 + 4 remaster collection. A source indicated the cuts could affect up to 90 staff members.

Veteran developers Brenda and John Romero have described the current state of the games industry as worse than the 1983 crash. In an interview with GamesIndustry.biz, they highlighted widespread layoffs and studio closures affecting nearly everyone. Brenda Romero called it 'definitely crashier' than the recession that saw video game revenue plummet 97 percent.

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Ubisoft has laid off 105 game developers at Red Storm Entertainment, shifting the studio from game development to an IT and Snowdrop engine support role. The North Carolina-based studio, founded in 1996 by Tom Clancy, will no longer make games. The move is part of Ubisoft's ongoing cost-cutting efforts.

Electronic Arts has laid off an unspecified number of developers across its Battlefield studios—including DICE, Criterion, Ripple Effect, and Motive—despite Battlefield 6's strong 2025 sales. The move, announced March 9, 2026, realigns teams around community priorities following developers' February comments on post-launch player decline. Affected studios will continue live-service updates.

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Netflix co-CEO Ted Sarandos expressed surprise and disappointment over James Cameron's criticism of a potential Netflix acquisition of Warner Bros. assets. Sarandos accused Cameron of participating in a Paramount disinformation campaign regarding theatrical release commitments. The remarks come amid ongoing bidding wars and regulatory scrutiny.

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