The Elder Scrolls IV: Oblivion Remastered co-developer Virtuos has confirmed significant layoffs impacting 7% of the company’s workforce, despite its recent successes. While the company has spent the last few years co-developing an array of best-selling games, from Oblivion Remastered to Metal Gear Solid Delta: Snake Eater, and updates for CD Projekt Red’s Cyberpunk 2077, it appears these have not benefitted the studio enough to offset the need for restructuring.
Reporting from French journalist Gauthier Andres (via Eurogamer) claims the issues facing Virtuos are contractual in nature, with the company allegedly overspending on some projects, and not including royalties in contracts – so that sales successes are not passed down. Per Andres, that has allegedly led to a team put under ‘severe strain’ and a game [Oblivion Remastered] whose ‘profitability is doomed to be questioned.’
Andres has also alleged Virtuos is planning a ‘move towards the use of generative AI,’ with employees getting mandatory training to use the technology.
Virtuos issues public statement about layoffs
According to Virtuos, which put out a public statement following news breaking, the company needs to evolve to meet the ‘changing needs’ of its partners, and the wider games industry.
‘As game development grows increasingly complex, we are realigning our global footprint and capabilities to strengthen our offering in high-value co-development, ranging from full game engineering to advanced art, including creative content production and live services,’ Virtuos said.
The move will involve a global restructure, with 200 roles in Asia set to be made redundant, as well as 70 roles in Europe, and ‘fewer than 10’ in France. Employees impacted by these layoffs have been promised ‘separation packages, career transition assistance, and opportunities for redeployment [where possible],’ but that will likely be little comfort in an industry which is swiftly losing job placements and any sense of stability.
Even releasing a blockbuster game with strong sales success is no longer enough to secure jobs, and that’s an incredibly concerning development. Unfortunately, we are seeing this more often lately, with developers struggling even in the face of success.
Going forward, Virtuos appears positive about the future and that its layoffs won’t impact existing partnerships or work on Oblivion Remastered, Cyberpunk 2077, or Metal Gear Solid Delate: Snake Eater. As always, our thoughts are with those employees now subject to layoffs, entering a jobs market that is tighter and more competitive than ever.
Also on ScreenHub: Candy Crush studio King is allegedly replacing staff with AI
Candy Crush studio King was recently overhauled by layoffs impacting over 200 staff. Now, a new report alleges those staff will be replaced by AI tools, which developers had been training for years prior to their departure. Sources speaking to MobileGamer.biz allege management had previously directed developers to train AI tools for efficiency, to create levels faster.
‘Most of level design has been wiped, which is crazy since they’ve spent months building tools to craft levels quicker,’ one source told the website. ‘Now those AI tools are basically replacing the teams. Similarly the copywriting team is completely removing people since we now have AI tools that those individuals have been creating.’
In a note sent around to staff, published by MobileGamer.biz, King management flagged AI tools as an important change to ‘get the business back to growth’ and aid in overall restructuring. ‘We plan to simplify the organisation,’ the memo reads. ‘Fewer layers, fewer overlapping remits, fewer hours spent on alignment, fewer people in meetings, fewer stakeholders for every project. Many leaders across King have been asked to redesign their organisations to be smaller overall.’
