People Can Fly Halts Development on Two Projects, Announces Staff Reductions

People Can Fly has made the decision to put two of its projects on hold and reduce its workforce. According to a statement from CEO Sebastian Wojciechowski on LinkedIn, the development of project Gemini and Bitfrost has been paused due to unresolved issues with a prominent publisher. Wojciechowski cited the publisher's failure to provide a draft of the subsequent content rider to the publishing agreement, which outlines the terms and conditions for further milestones, as a key reason for the pause. Additionally, he noted a lack of communication from the publisher regarding its intentions to continue or terminate both projects. The analysis of People Can Fly's cash flow also revealed that Bitfrost lacked the necessary prospects for securing organizational resources and funds to continue production and release. As a result of the project suspensions, the studio will be scaling down its teams, although the exact number of affected employees has not been disclosed. The company expressed its regret and gratitude to those affected, without specifying the publisher involved. People Can Fly is currently collaborating with Krafton on project Echo, Sony Interactive Entertainment on project Delta, and Xbox Game Studios on Gears of War: E-Day. The studio had previously worked with Square Enix on Outriders in 2021. People Can Fly has experienced layoffs in the past, including in January 2024, when over 30 employees were let go due to budget constraints, and in December, when more than 120 workers were affected. Wojciechowski stated that the decision was necessary due to persistent external market pressure and the need to adjust to the current market conditions. The company is rebuilding its efforts with new work-for-hire engagements and focusing on the development of a single independent game, while tailoring its plans to its financial capacity.