Sandsoft addresses effects of layoffs within its internal studios

Update, July 24, 2025: Sandsoft has clarified that its recent organizational changes have not impacted its entire workforce. In a statement sent via email to GamesIndustry.biz, the company mentioned that "up to 21 employees involved in internal game development were affected."

The statement continued by emphasizing that "the majority of Sandsoft’s global team remains in place," as the company aims to focus on the publishing sector, which is seen as a key area for sustained growth.

Original story, July 23, 2025: Approximately 65 employees were affected by the shutdown of Sandsoft's offices in Barcelona and Riyadh.

Sandsoft, a well-known international game developer and publisher, informed MobileGamer of its decision to close the internal studios. The company expressed gratitude for the team's creativity and commitment and pledged to support staff during the transition.

David Fernández, CEO of Sandsoft, stated that the company is intensifying its focus on publishing due to its demonstrated growth and future potential in this area.

A company representative stressed that the decision was not related to the quality of work at the affected studios. Instead, it was about concentrating resources where they can have the most significant impact and fostering sustainable growth. Upon evaluating recent business performance, Sandsoft realized that its strongest capabilities and future prospects lie in publishing.

Back in 2022, Sandsoft Games and NetEase Games announced a collaborative initiative designed to target the MENA (Middle East and North Africa) market. More details on this can be found here.

In 2025, nearly 4,000 developers have lost their jobs, with companies like EA, including its Respawn unit, People Can Fly, Jagex, Build a Rocket Boy, and Supermassive Games implementing layoffs. Furthermore, more than 9,000 additional layoffs have occurred as Microsoft started reducing its gaming division personnel earlier this month.