Skydance Lays Off Game Developers Post-Warner Bros. Merger

Skydance began laying off games staff last week, roughly a month after its Warner Bros. Discovery takeover closed and brought the two companies' games businesses under common ownership. Insider Gaming reports at least 30 people lost their jobs, though the outlet believes the actual number is higher. Skydance has not announced a headcount or commented on the layoffs.

The publicly identified cuts are concentrated on teams that worked for Skydance before the acquisition. Insider Gaming says none of the affected employees identified so far came from previously owned Warner Bros. Games studios. Vertical Slice's November 7 report, based on employee LinkedIn posts, identified staff associated with Paramount Games and Skydance Interactive, the developer behind The Walking Dead: Saints & Sinners.

Paramount Games associate design director David Ballard said he had been laid off alongside several colleagues, calling it a sad day but adding he was "super grateful" for the opportunities he was given. Lead engineer David Vera, who said he was not affected, listed 25 people who appeared to have lost their jobs. Skydance Interactive senior gameplay and game AI programmer Rebecca Vessal said most of her team had been let go, though she was not directly impacted.

The studio structure reflects an earlier reorganization. Vertical Slice reports that Paramount merged Skydance Interactive with Skydance New Media in July to form Paramount Games. After the Warner Bros. acquisition, the company brought its games divisions together under the Skydance Games name, while an internal FAQ said individual businesses such as WB Games would retain their identities.

Insider Gaming notes that layoffs were expected as the acquisition combined two major companies with many similar positions. The outlet reports Skydance is offering buyouts to employees and continues to plan massive cuts overall, though it has not yet moved against Warner Bros. Games studio staff. Neither report identifies a project cancellation or release-date change resulting from these layoffs.