Phoenix Labs Reduces Workforce

Phoenix Labs recently underwent a restructuring process, confirming to GamesIndustry.biz that it has laid off a number of employees. According to a company representative, "As part of our ongoing evaluation of development projects, we have decided to concentrate on a smaller number of initiatives that align with our goals for success and long-term viability." This strategic shift is intended to bolster the prospects of Fae Farm and Dauntless, as well as other unannounced projects in the pipeline. In an effort to minimize the impact on staff, the company explored alternative roles for affected employees wherever possible. However, approximately 9% of the workforce was ultimately let go. To support those leaving the company, Phoenix Labs is providing severance packages, extended benefits, and outplacement assistance to facilitate a smoother transition. This move comes shortly after the studio's management team secured investment to regain independence from former parent company Garena. Phoenix Labs was initially acquired by Garena in early 2020 and subsequently expanded its operations with new locations in Montreal and Los Angeles. To date, Dauntless remains the company's sole released title, with Fae Farm, a Switch-exclusive game, slated for release later this year.