French video game studio Don’t Nod, best known as the co-creator of the Life is Strange series, has suffered a second round of layoffs—less than a year after a significant portion of its workforce was cut in October 2024. The latest wave was confirmed by Principal Cinematic Artist Mary Pouliot on LinkedIn, who was among those let go from the studio’s Montreal branch.
Founded in 2008, Don’t Nod rose to prominence with the original Life is Strange in 2015, which helped define a new era of emotional, choice-driven narrative games. In addition to Life is Strange 2 (2018), the studio has developed several other notable titles, including Vampyr, Jusant, and Banishers: Ghosts of New Eden.
Confirmation from Lost Records Developer
The most recent round of layoffs was disclosed via a LinkedIn post by Pouliot, who had been working on the upcoming Lost Records: Bloom & Rage. She noted that although layoffs had become widespread across the industry, the decision still came as a “real shock.” Pouliot also confirmed that several colleagues were affected but did not reveal exact numbers.
Ongoing Restructuring After Major Losses
This marks the second significant layoff event for Don’t Nod in under a year. The first, which occurred in October 2024, impacted roughly 21% of the studio’s workforce. At the time, reports linked the cuts to underperformance of Jusant and Banishers: Ghosts of New Eden—both of which fell short of sales expectations despite receiving some critical praise.
The recent layoffs may also be connected to the commercial disappointment of Life is Strange: Double Exposure, developed by Deck Nine but published by Square Enix, which posted “large losses” after its release in late 2024. While Don’t Nod was not the developer, the title’s lackluster performance may have affected the broader Life is Strange ecosystem and its associated studios.
Industry-Wide Trend
Don’t Nod’s situation mirrors an ongoing trend of instability across the gaming industry, with over 10,000 layoffs reported globally between 2023 and 2025. Studios both large and mid-sized are grappling with inflated development costs, changing consumer habits, and the risks associated with self-publishing.
Despite the setbacks, Don’t Nod is still pushing forward with new IPs, including the highly anticipated Lost Records: Bloom & Rage, a narrative adventure slated for future release.
The creative legacy of Don’t Nod—particularly through Life is Strange—continues to leave an imprint on the gaming world. However, repeated layoffs highlight the uncertain future many studios face, even with critically acclaimed franchises under their belt. As Don’t Nod recalibrates, the community watches with cautious optimism for what comes next.