Layoffs continue to bombard the video game industry in 2025, with The Chinese Room now the latest studio affected by ongoing corporate restructurings and broader economic uncertainty.
Known for BAFTA-winning narrative games such as Everybody’s Gone to the Rapture and the recently released Still Wakes the Deep, The Chinese Room is currently working on a highly anticipated sequel to Vampire: The Masquerade – Bloodlines. Following the news of studio layoffs, many fans are understandably concerned about how this may affect the future of that project and other games in development.
The video game industry has experienced relentless rounds of job cuts since 2023. What began as isolated incidents soon grew into a widespread trend by 2024, impacting both major publishers and smaller independent developers. Hopes for a more stable 2025 have been dashed once again, as The Chinese Room joins a growing list of studios forced to downsize.
Confirmed Layoffs at The Chinese Room
According to Game Developer, the studio’s parent company, Sumo Group, has initiated another round of layoffs as part of internal restructuring. While no official statement has been released by either company at the time of writing, the news has been corroborated by multiple former employees who confirmed their termination via LinkedIn.
Notably, at least nine developers have spoken publicly about being laid off, including a technical producer and VFX artist who were involved in both Still Wakes the Deep and the in-progress Vampire: The Masquerade – Bloodlines 2. The timing of these layoffs has raised further concern, as it comes shortly after the launch of DLC for Still Wakes the Deep, a project that had earned critical acclaim for its atmospheric storytelling.
Community Reactions and Industry Impact
The community has responded with an outpouring of support for the affected developers. Many are voicing frustration with the ongoing volatility in the gaming industry, particularly the apparent lack of stability even within studios tied to well-known publishers or IPs.
While no delay has been confirmed for Bloodlines 2, fans are now left wondering how this round of layoffs might affect its production timeline and overall quality.
A Trend with No End in Sight?
The Chinese Room’s situation mirrors a troubling pattern of layoffs seen across the industry. From AAA publishers to beloved indie studios, financial pressures and shifting priorities have led to frequent job losses and project cancellations.
As restructuring continues and companies recalibrate their development pipelines, many are calling for greater transparency and stability to ensure both creative innovation and job security. The hope now is that the talent impacted by this layoff wave can quickly find new opportunities—and that studios can regain a sustainable footing for the future.