Heart Machine may shut down following the collapse of a publishing agreement, resulting in the layoff of most of its workforce

Heart Machine, the studio behind Hyper Light Drifter, faces potential closure following the collapse of a significant publishing agreement.

On LinkedIn, Alx Preston, who leads the studio, disclosed that the inability to secure essential funds forced widespread layoffs. "It's devastating," Preston remarked, emphasizing the sudden loss of income and lack of alternative financial solutions.

Those let go will receive support and assistance in finding new employment opportunities. Preston urged his network to connect if they know of any job openings for "extraordinarily talented, kind people," highlighting the skills and dedication of the former team members.

Expressing gratitude, Preston thanked the talented contributors to Heart Machine's projects and cherished the support from their community and fans. Despite the hurdles of a tough industry landscape, he is determined to find a way forward for the studio’s future.

Notably, Heart Machine has seen three separate rounds of layoffs over the past three years. The latest happened in November 2024, linked to the early access release of Hyper Light Breaker, following previous layoffs in October 2025. The initial cuts were reported as Hyper Light Breaker development wrapped up, attributed to external challenges such as changes in funding, corporate mergers, and broader industry uncertainties small studios are facing today.

The second round occurred soon afterward, though not officially announced by the company. Employees shared news of these redundancies shortly before the planned release of Possessor(s), with concerns that no one involved with the project might remain at the company by the time of its launch.

Earlier this year, a union was voluntarily recognized by Heart Machine after 13 workers organized a bargaining unit.