Don’t Nod facing ‘potential reorganization’ and layoffs amid 2024’s first-half struggles

Don’t Nod’s weak financials for the first half of 2024 (January 1-June 30, 2024) may lead to the French studio laying off staff.

This possible “reorganization project” may result in up to 69 jobs being eliminated, said CEO Oskar Guilbert. The effort would “restore more organizational agility, rationalize the number of the company production lines, and secure the company financing.”

Last month, Don’t Nod posted “disappointing” first-half declines. At the time, it also indicated it may change its roadmap for the next several years, with a renewed focus on 2025’s Lost Records: Bloom & Rage.

Guilbert stated management has already conveyed this potential reorganization to staff representatives. Like the UK, French law requires a company to first consult with staff representatives if more than ten employees (if the headcount is larger than at least 50 people) are being let go.

He further stated Don’t Nod leaders are “committed to fostering a dialogue…with the aim of reaching agreements on accompanying social measures, including the possibility of a voluntary redundancy plan, should the project be adopted.”

As previously reported, Don’t Nod’s operational revenue in the first half of 2024 reached €14.6 million (or $16.29 million), down 11 percent from 2023’s first half. Development revenue also fell during this time with Banishers: Ghost of New Eden’s launch and no other projects in development.

Both Jusant and Banishers missed their expected sales targets, leading the studio to pause work on two unannounced projects from Don’t Nod’s Paris team in a €7.6 million (or $8.26 million) writedown.

In the newest report, Guilbert reiterated Don’t Nod’s commitment to the development of Lost Records and two unannounced projects (“P10” and “P14”) it hopes to release before the end of 2027.