The Impact of Internal Review: Phoenix Labs Cuts 34 Jobs

In a disappointing turn of events for Phoenix Labs, the developers of Fae Farm and Dauntless, a recent internal review has resulted in the company cutting 34 jobs. This comes after a year of ups and downs for the Canadian studio, which successfully regained its independence from Garena in February, but also laid off 9 percent of its workforce just a few months later in May. Although the news was initially shared by employees on LinkedIn, a representative from Phoenix Labs confirmed the decision, stating that it was made “after a rigorous review” and aimed at restructuring their support teams.

The 34 job cuts primarily affected Phoenix Labs’ publishing, HR, IT, and shared services teams, while the games teams remain unaffected. This indicates that the studio intends to prioritize its core development teams and focus on delivering updates for their existing titles, including Fae Farm’s upcoming DLC and the ongoing development of Dauntless. The statement emphasizes that the studio has exciting unannounced projects in the works, suggesting a determination to move forward despite the setbacks.

Dauntless, launched out of beta in 2019, offers players a simplified experience reminiscent of the popular Monster Hunter franchise. Unlike its predecessor, Dauntless places less emphasis on grinding and collecting monster materials, allowing players to progress more smoothly. Similarly, this year’s Fae Farm provides a more accessible and less time-consuming alternative to games like Stardew Valley. Both titles have received positive feedback for their efforts to streamline gameplay mechanics and enhance the player experience.

The layoffs in May were attributed to the studio’s pursuit of long-term success and sustainability. Phoenix Labs stated that they would focus on fewer development projects moving forward, aligning their resources to ensure the best possible outcomes for their games. While the job cuts are undoubtedly distressing for those affected, it is not an isolated incident in the gaming industry this year. Numerous studios, including recently Fishlabs, have undergone significant reductions in their workforce, potentially indicating a broader trend within the industry.

Phoenix Labs expressed gratitude towards the team members affected by the layoffs, acknowledging their contributions in building the studio to its current state. While their impact will be missed, the statement assures that their influence will continue to resonate through the studio’s future endeavors. This recognition of their invaluable efforts highlights a sense of respect and appreciation for the individuals who have dedicated their time and skills to the success of Phoenix Labs.

As Phoenix Labs continues its development journey, navigating the challenges of the gaming industry, it is important to recognize the impact of internal reviews and restructuring. The studio’s decision to cut jobs may bring short-term benefits in terms of refocusing resources, but it also carries profound consequences for those directly affected. It remains to be seen how these changes will shape the future of Phoenix Labs and its upcoming projects, but one thing is certain: the path ahead will not be easy.

In light of recent events, our thoughts go out to the employees who have lost their jobs during these challenging times. We hope that they find new opportunities that allow them to showcase their talents and thrive in the gaming industry.


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