Life is Strange developers Don’t Nod have acknowledged that there’s “material uncertainty regarding the company’s ability to continue as a going concern beyond January 31st, 2027”, as they kick off negotiations with the union representing staff who could be laid off as part of a “transformation project”. The proposed cuts, which could see up to 90 jobs eliminated, are the latest development in the studio’s efforts to make their financial future look less like a road to ruin which might run its course either this year or very early in 2027.
As spotted by our suit-wearing colleagues at Gamesindustry.biz, Don’t Nod posted their financial results for the first half of 2026 late last week, providing a bit more information on the plans they’re putting in motion to start trying to turn things around by likely laying a bunch of people off.
“Consolidated gross cash at the end of June 2026 amounted to €9.8 million and €8.0 million at the end of July 2026, compared to €15.4 million at the end of 2025,” the company wrote. “Given the available cash and the cash flow forecast, the company’s ability to continue operations depends partly on securing external financing to cover business operation and project development needs. This represents material uncertainty regarding the company’s ability to continue as a going concern beyond January 31st, 2027.”
As for the proposed layoffs as Don’t Nod scramble to right the ship, the studio noted that “up to 90 positions” might be affected. The company’s management have already begun negotiations with the union representing staff, after their board of directors have approved the “transformation” plans. The stated goal of those plans as of right now is a “refocusing” of Don’t Nod’s operations in France “around a single production line, bringing together the expertise required to launch new projects before the completion of current productions”. The company claim this’ll mean “priority projects” will get more attention, while resource allocation and responsibilities will be clearer.
In the meantime, Don’t Nod are “continuing to examine the most appropriate legal and operational arrangements to support this transformation and ensure the continuity of [their] operations, in the best interests of all [their] stakeholders”. “The measures being considered today are difficult; we fully appreciate what they may mean for the employees affected and are ensuring that the necessary support measures are put in place,” CEO Oskar Guilbert put it. “This plan is, however, essential to ensuring the Company’s continued operations.”
Solidarity with any Don’t Nod workers devs who end up being affected, if the studio do end up laying staff off. .
