Sandsoft Provides Update on Internal Studio Layoffs

In a recent update on July 24, 2025, Sandsoft clarified that its company-wide restructuring did not have a broad impact on all employees. According to an email from a company representative to GamesIndustry.biz, "up to 21 employees involved in internal game development were affected by the changes." The representative emphasized that "the majority of Sandsoft's global team remains intact, as we focus on publishing, which holds the most potential for long-term growth." In an initial report on July 23, 2025, it was announced that approximately 65 staff members were affected by the closure of Sandsoft's offices in Barcelona and Riyadh. Sandsoft, a global game developer and publisher, stated that the decision to close the internal studios was difficult, but necessary. The company expressed appreciation for the affected teams' creativity and dedication, and committed to supporting them through the transition. According to Sandsoft CEO David Fernández, the company is "doubling down on publishing, an area where we have already seen significant growth and anticipate future success." A company spokesperson added that the decision was not a reflection on the quality of work or talent at the studios, but rather a strategic move to concentrate resources where they can have the greatest impact and drive sustainable growth. After reviewing business performance, the company determined that publishing is where they excel and see the most potential for future growth. In 2022, Sandsoft Games and NetEase Games announced a partnership for the MENA market. The gaming industry has seen significant layoffs in 2025, with an estimated 4,000 developers losing their jobs, including recent cuts at EA, Respawn, People Can Fly, Jagex, Build a Rocket Boy, and Supermassive Games. Additionally, Microsoft has begun making layoffs in its gaming division, affecting over 9,000 people.