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Iron Galaxy Announces New Layoffs as It Adopts a Smaller Posture for a ‘New Normal’

Leaders say the market reset since 2020 is permanent.

Overview

  • Iron Galaxy said it has cut jobs in a new round of layoffs, without disclosing how many roles were affected.
  • The studio explained that players now engage with games differently and that publishers use tougher funding criteria, which it calls a new normal.
  • It said it cannot sustain the headcount it carried last year, even after cutting 66 positions in February 2025.
  • The company described the changes as a restructure and said friends and teammates are losing their jobs, expressing regret over the decision.
  • GamesIndustry.biz asked the company how many employees were let go, and the studio has not provided a number.