Virtuos, the co-development company known for its work on this year's remaster of Oblivion, has announced layoffs impacting 7% of its employees

Virtuos, a company specializing in co-development services, has confirmed reports of substantial layoffs, impacting approximately 270 roles across Asia and Europe. This accounts for about 7% of its total workforce.

In a company statement, Virtuos described the strategy as part of an evolution to better serve its partners and the gaming industry by adjusting its global operations and capabilities.

Referring to the move as "rebalancing," Virtuos attributed the layoffs to reduced occupancy and demand shifts within the industry. Fewer than ten positions were affected in France, where the main team for Oblivion Remastered is located.

The heavier reductions in Asia were explained as a response to dwindling demand for specific services and the need to synchronize with the geographic areas of their clients.

Over the past year, Virtuos has reinforced its emphasis on high-quality co-development through major acquisitions, such as Beyond-FX, Pipeworks, and Umanaïa in North America, as well as Third Kind Games and Abstraction in Europe.

These acquisitions bolster core competencies in visual effects, design, Unreal Engine development, and creative innovation. The ongoing investments indicate Virtuos's ambition to expand in domains where it offers significant expertise and value, while ceasing services with waning demand.

Emphasizing the importance of aligning team locations with client locations, the company explained that this restructuring initiative significantly affects its Asian teams.

Current projects remain underway, including those for titles such as Oblivion Remastered, updates for Cyberpunk 2077, and a joint venture with Konami on Metal Gear Solid Δ: Snake Eater.

Employees impacted by the layoffs will receive "separation packages, career transition support, and opportunities for relocation across the company wherever feasible."

Editor's note: This article was corrected to address previous misspelled mentions of 'Virtuos'.