May 2025 – Playtonic Games, the UK-based studio best known for the nostalgic platformer Yooka-Laylee, has reportedly laid off multiple team members across departments, raising concerns about the future of its projects—especially the upcoming remaster, Yooka-Replaylee.
According to posts made by current and former employees on LinkedIn and reported by Destructoid, the layoffs affected staff from several key areas including production, art, and VFX. The total number of redundancies has not been officially disclosed by the company.
Layoffs Hit Amid Remaster Development
Playtonic is currently working on Yooka-Replaylee, a remastered version of its original 2017 release, Yooka-Laylee. The remaster is expected to launch in 2025, though a specific release date has yet to be confirmed. The studio has not commented on whether the recent layoffs will affect the development timeline of Yooka-Replaylee or other internal projects.
Founded in 2014 by a team of ex-Rare developers, Playtonic Games gained attention for bringing the charm of Banjo-Kazooie into the modern era. The original Yooka-Laylee was crowdfunded via Kickstarter and released in 2017 to mixed but passionate reception. Its 2D follow-up, Yooka-Laylee and the Impossible Lair, was better received and praised for tighter mechanics and design.
Uncertainty for Playtonic Friends
In addition to game development, Playtonic also operates Playtonic Friends, a publishing label launched in 2021 to support indie developers. Through this division, the studio has helped publish titles like Demon Tides and Cattle Country. The layoffs have not been explicitly linked to the publishing arm, but industry watchers fear that resource constraints could impact ongoing support for partnered developers.
Industry-Wide Impacts
Playtonic joins a growing list of game studios facing workforce reductions in 2025, reflecting broader challenges across the gaming industry. Rising development costs, tighter funding, and market saturation have put pressure on even well-established indie studios.
What’s Next for Playtonic?
Despite the layoffs, Playtonic has not announced any cancellations or delays. However, fans and industry peers are watching closely, especially given the high anticipation for Yooka-Replaylee. Support for affected employees has been pouring in across social media, with many praising their contributions and encouraging studios to reach out with job opportunities.
The layoffs at Playtonic Games are a sobering reminder of the volatility within the gaming sector—even for studios with a beloved IP. As the company navigates this transition, the future of both Yooka-Replaylee and its publishing division remains under the spotlight.