Don't Nod considering laying off 90 workers in France

Chris Kerr,Senior Editor, News,GameDeveloper.com

September 8, 2026

2 Min ReadImage via Don't Nod

Life is Strange and Lost Records developer Don't Nod has warned it could make 90 employees based in France redundant in order to ensure its survival.

The ailing company, which earlier this year explained it was exploring ways to extend its cash runaway after previous investor Tencent decided against injecting more funds into the business, has confirmed it might not be able to continue operating beyond January 31, 2027.

In a recent business update shared with investors, Don't Nod noted that operating revenue declined by 56 percent year-on-year during the first half of the current fiscal year. Operating revenue did not cover Don't Nod's current operating expenses. As a result, the company recorded an operating EBITDA loss of €4.3 million for the first half of 2026.

The studio blamed that downturn on "systemic pressures in the video game industry, characterized by highly selective financing." Don't Nod said it must now adapt to "new market conditions" to become more competitive.

As previously mentioned, that means layoffs could be imminent.

"Against this backdrop, the profound changes in the economic conditions of the video game industry and its financing, combined with the deterioration of Don't Nod's key financial indicators, are significantly affecting its competitiveness. The Company therefore believes it is necessary to adapt its business model," the company told investors.

"With this in mind, Don't Nod is refocusing its operations in France around a single production line, bringing together the expertise required to launch new projects before the completion of current productions. This organizational initiative is intended to maintain a continuous pipeline of projects and support the Company's long-term growth."

Don't Nod said the restructure will enable it to more efficiently allocate resources and refocus around priority projects. The move has been approved by the Don't Nod board of directors. Studio management has also commenced negotiations with union representatives.

Layoffs & Studio Closures

About the Author

Chris Kerr

Senior Editor, News, GameDeveloper.com

Game Developer news editor Chris Kerr is an award-winning reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton.

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