Skydance has confirmed layoffs within its games division, less than two months after Paramount and Warner Bros. Discovery completed their merger. The company says it is reorganizing parts of its gaming business and scaling down some projects, although it has not disclosed how many employees have been affected or identified the games facing reductions.
In a statement provided to Variety on November 9, Skydance spokesperson said the company had reviewed where it was investing its resources and made the decision to reduce the scope of certain projects. The spokesperson emphasized that the affected employees’ departures were not a reflection of their talent, dedication, or creativity, and said the company intended to handle the process with transparency and respect. The precise number of layoffs remains unconfirmed. Paramount Games lead engineer David Vera identified at least 25 affected colleagues in a LinkedIn post, listing employees across several development disciplines, including production, writing, engineering, audio, level design, and art. Insider Gaming separately reported that it understood at least 30 employees had been let go, with the actual figure potentially higher.
Other employee accounts indicate that the cuts have affected development teams directly. Senior gameplay and game AI programmer Rebecca Vessal said she had retained her position, but that most of her team had been laid off. These accounts provide a clearer picture of the affected roles, although they do not establish the full extent of the restructuring. The layoffs follow the October 6 completion of the Paramount–Warner Bros. Discovery merger, which brought the companies’ gaming operations together. The combined business includes Paramount’s gaming operations and Warner Bros. developers such as Rocksteady Studios, NetherRealm Studios, TT Games, and Avalanche Software. Tony Driscoll, who previously led Paramount Games Studio, was placed in charge of the combined games and experiences division.
Insider Gaming reported that the employees publicly identified as affected so far appear to have worked for Skydance before the merger, rather than the former Warner Bros. Games studios. However, neither the company nor the available employee accounts establish a complete breakdown of the affected teams. The company has also not identified which projects are being scaled down. Paramount’s announced gaming slate includes Teenage Mutant Ninja Turtles: The Last Ronin, Avatar Legends: The Fighting Game, Marvel 1943: Rise of Hydra, and an untitled Star Wars project. There is currently no confirmation that any of these games has been canceled or specifically affected by the layoffs.
For now, the restructuring leaves two important questions unanswered: how many employees ultimately lost their jobs, and which projects will be affected by the reduced investment. Skydance has acknowledged both workforce reductions and project changes, but further details about the future of its gaming slate have yet to emerge.