Don't Nod could lay off up to 90 employees after financial warning

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Life is Strange studio expects cuts of up to 90 jobs and admits uncertainty over its operations after January 2027.

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Don't Nod has begun negotiations with the union representing employees potentially affected by a transformation plan. The proposal could eliminate up to 90 positions at the studio behind Life is Strange and Lost Records: Bloom & Rage.

In its financial results for the first half of 2026, the company said there was “material uncertainty” about its ability to continue operating after January 31, 2027. The continuation of its business would depend in part on securing external financing to cover operations and project development.

Don't Nod's consolidated gross cash position stood at €9.8 million at the end of June 2026, falling to €8 million by the end of July. At the end of 2025, it had been €15.4 million. The company attributed the decline to projected cash flow and the financial requirements of ongoing projects.

The board of directors has already approved the “transformation” plans, while management negotiates with the union. The stated aim is to reorganize Don't Nod's operations in France around a single production line, bringing together the necessary skills to start new projects before completing those already in production.

According to the company, the change should focus more attention on priority projects and clarify the allocation of resources and the responsibilities of each team. Don't Nod also said it was still assessing the most suitable legal and operational arrangements for carrying out the transformation and maintaining business continuity.

CEO Oskar Guilbert described the measures under consideration as difficult and said the company recognized their impact on affected employees. He added that the company was preparing the necessary support measures, but considered the plan essential to ensuring the continuity of its operations.

The potential workforce reduction comes as Don't Nod attempts to reorganize its finances, with January 31, 2027, identified by the company itself as the point of uncertainty for the continuation of its business.

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