British game developer Playtonic, best known for its Yooka-Laylee platformers, has officially confirmed recent layoffs after widespread industry reports last week. Founded in 2014 by veteran developers from iconic franchises like Donkey Kong Country and Banjo-Kazooie, Playtonic has experienced notable milestones — from launching original IPs to establishing its own publishing division.
Despite positive momentum, including the successful launch of Playtonic Friends in 2021 and securing minority investment from Tencent, the studio is now navigating a difficult period. In a recent social media post, Playtonic acknowledged the decision to reduce its workforce, attributing the layoffs to the “knock-on effects” of a turbulent gaming industry that has seen widespread job losses.
Playtonic described the layoffs as an “incredibly heartbreaking” choice made only after exploring all other options. The company paid tribute to the departing employees, emphasizing how they helped shape the studio’s culture, games, and overall identity.
Acknowledging the broader challenges facing the gaming landscape, Playtonic called this a “period of profound change” and stressed that the industry’s shifting environment has directly impacted their decision. The studio also expressed a strong commitment to supporting those affected, promising assistance with their “next steps” as they move forward.
As the gaming industry continues to evolve rapidly, They remains focused on adapting to these changes and continuing to deliver memorable gaming experiences in the future.