Phoenix Labs Reduces Workforce by 34 Employees

Phoenix Labs has undertaken its second round of layoffs this year, as disclosed by former employees on LinkedIn. A spokesperson for the studio confirmed the layoffs to GamesIndustry.biz, stating that the decision was made after a thorough review to restructure support teams, resulting in a reduction of 34 staff members across various departments including publishing, human resources, IT, and shared services. The games development teams were not affected, and work on Fae Farm's DLC, Dauntless updates, and unannounced projects continues uninterrupted. The studio expressed gratitude to the departing employees for their contributions to Phoenix Labs' growth and noted that their impact will endure. This move follows a previous round of layoffs in May, where the company reduced its workforce by 9% to refocus on its path to success and sustainability. The year has been significant for the studio, having regained its independence from Garena in February and seen the departure of three co-founders. Additionally, the company recently announced the first major content update for Fae Farm, which was launched in September.