People Can Fly halts two projects, reveals staff reductions

The game development company People Can Fly has halted work on two of its projects and announced additional staff cuts.

CEO Sebastian Wojciechowski revealed on LinkedIn that projects Gemini and Bitfrost have been put on hold due to complications with an undisclosed publisher.

Wojciechowski highlighted that the publisher has not provided a draft for the continuation of the publishing agreement, leaving terms for upcoming milestones unclear.

Moreover, he mentioned the absence of communication from the publisher regarding the continued or terminated status of these projects.

For Bitfrost, the company's cash flow analysis indicated challenges in securing the resources and funding needed to continue its development.

As a result of the stalled projects, the company will reduce its workforce, though the number of affected employees has not been disclosed.

"We deeply regret these developments and are thankful for everyone's efforts so far," Wojciechowski stated.

The identity of the publisher in question was not disclosed in his remarks.

At present, People Can Fly is collaborating with Krafton on project Echo, with Sony Interactive Entertainment on project Delta, and with Xbox Game Studios on Gears of War: E-Day.

Back in 2021, the studio partnered with Square Enix on the online game Outriders.

Previous cutbacks occurred in January 2024, when over 30 positions were eliminated due to budget constraints, as noted by a GamesIndustry report.

The studio faced an additional wave of layoffs in December, impacting more than 120 employees, as per another report.

"This decision was driven by ongoing market pressures exceeding our predictions," Wojciechowski explained.

"The industry landscape continues to shift, requiring us to adapt our strategies accordingly. We are focusing on rebuilding through new work-for-hire projects and concentrating on the creation of a single independent game."

He added, "We have confidence in our teams and their potential, remaining highly dedicated to progressing. However, our plans must align with our financial reality."

Initially, this situation involved downsizing efforts on project Bitfrost, which has now been postponed.