Eidos Montreal Cuts Jobs, Cancels Projects as Focus Shifts to Support Work
Layoffs Confirmed
Eidos Montreal, a studio owned by Embracer Group, has undergone another round of layoffs, with numerous former employees confirming their departures on LinkedIn. This marks the second round of job cuts at the studio in 2025, following a previous round in March.
Project Cancellations and New Focus
Sources indicate that most internal projects at Eidos Montreal have been cancelled. The studio is now focusing on co‑developing projects, including Grounded 2 (led by Obsidian) and the Fable reboot (headed by Playground Games). Neither Eidos nor Embracer Group has officially confirmed the layoffs or responded to requests for comment.
Financial Pressures at Embracer Group
The layoffs are part of ongoing challenges at Embracer Group, which has faced significant financial difficulties since 2023. The collapse of a $2 billion financing deal led to multiple studio closures and nearly 1,400 layoffs by February 2024. Despite announcing the end of its restructuring in March 2024, layoffs and closures have continued.
Eidos Montreal’s Layoff History
Eidos Montreal has a history of layoffs, including a round in early 2024 that saw the cancellation of an unannounced Deus Ex game. The studio’s partner, Crystal Dynamics, has also undergone three rounds of layoffs in 2025.
Industry‑Wide Turbulence
The broader gaming industry has seen a wave of layoffs and studio closures recently. For instance, Crystal Dynamics laid off nearly 30 employees to optimize development of its flagship Tomb Raider game. Similarly, Splash Damage, acquired by private equity, made major layoffs to remain agile despite not releasing a game since 2020.
Conclusion
The situation at Eidos Montreal reflects the ongoing turbulence in the gaming industry, as studios grapple with financial pressures and shifting priorities.
