Eidos-Montreal Announces More Layoffs and Deepens Industry Crisis

Studio linked to Embracer Group cuts another 75 employees and reinforces the wave of layoffs in 2025

The crisis in the gaming industry shows no signs of stopping, and now it was the turn of Eidos-Montreal to announce another round of layoffs. In an official statement on LinkedIn, the studio revealed that 75 employees were let go, citing the impossibility of relocating them to other active projects.

The reason? One of their mandates has come to an end, suggesting that a project was completed or moved to a new development phase without the need for these professionals.

Another dark chapter in the history of Eidos-Montreal

Unfortunately, this is not the first time that Eidos-Montreal has faced significant cuts. Last year, 97 employees were laid off as part of a restructuring of the Embracer Group, its parent company. At that time, rumors also surfaced that a new Deus Ex was in development and was canceled before being officially announced.

Now, under the management of the new division Middle-earth Enterprises & Friends, which brings together several AAA studios, the promise is that ongoing projects will continue strong.

What games does Eidos-Montreal have in development?

Currently, the only confirmed production from Eidos-Montreal is its collaboration in the development of Fable, the highly anticipated franchise reboot, led by Playground Games. The studio's last major release as a lead developer was Marvel’s Guardians of the Galaxy, a game that received critical acclaim but underperformed commercially according to the Square Enix, its former parent company.

With today's cuts, the future of the studio within the Embracer Group is uncertain, a company that has undergone a series of restructurings and closures, including the shutdown of Volition Games and severe cuts at Gearbox Entertainment.

Another warning for the gaming market

The gaming market has faced a brutal wave of layoffs in 2024 and 2025, with hundreds of studios reducing teams or being completely closed. Major names like Epic Games, Microsoft, Riot Games, Unity, and Bungie have also made massive cuts, creating uncertainty for thousands of developers.

In the official statement, Eidos-Montreal tried to minimize the impact of the layoffs, saying:

"We do not have the capacity to relocate them to other projects, but that does not reflect their talents or abilities. We will do our best to support them in this transition."

Beautiful words, but they do not change the fact that more 75 talented professionals are now unemployed. The question now is whether Eidos-Montreal will be able to keep its projects alive or if this will just be another piece in the domino of collapses within the Embracer Group.