Eidos-Montréal, a subsidiary of Embracer, is said to have experienced further layoffs

Eidos-Montréal, a studio owned by Embracer and known for developing Marvel's Guardians of the Galaxy, has reportedly faced another round of layoffs. Prior job cuts took place in March, and recent reports indicate that over a dozen employees have been laid off, with potential for more reductions.

The gaming website Insider Gaming revealed these workforce changes, indicating a precarious situation for remaining staff. A former employee affected by these layoffs shared their situation on LinkedIn, seeking new opportunities in design leadership, a move highlighted by Game Developer.

Another LinkedIn post from a current team member at Eidos-Montréal noted that the layoffs impacted teams across design, production, writing, 3D art, concept art, and animation, as seen here.

According to company insiders speaking to Insider Gaming, most of Eidos-Montréal's projects have been terminated. The studio is now concentrating on co-development efforts, contributing to projects like Microsoft's Grounded 2 and Fable. Eidos-Montréal has previously been acclaimed for its work on the Deus Ex series, Shadow of the Tomb Raider, and Marvel's Guardians of the Galaxy released in 2021.

GamesIndustry.biz has contacted Embracer for a statement. These layoffs mark the second occurrence in under a year. In March, 75 employees were dismissed, followed by 97 layoffs at the beginning of 2024.

Embracer Group acquired Eidos-Montréal as part of its purchase of Square Enix's Western studios, including Crystal Dynamics and Square Enix Montréal, for $300 million in 2022, as reported here.

Since then, Embracer has endured financial challenges due to an unfulfilled $2 billion investment from Saudi Arabia's Savvy Games Group, prompting a "restructuring program" that led to substantial layoffs, project cancellations, and closures of several studios, as detailed here.

Crystal Dynamics, another studio in the Eidos-Montréal network, has undergone three rounds of layoffs this year, as reported here.

The ongoing impact on the gaming industry is further evidenced by recent layoffs, including 27 jobs cut by kids' games specialist Outright, and undisclosed job reductions due to restructuring at Sharkmob, as noted here and here.